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6 key data analytics that can help you boost user engagement and app retention

Andrea Bell

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6 key data analytics that can help you boost user engagement and app retention

Initially, every app developer struggles to infuse value in their apps. It is because they try to determine success with the number of downloads, and ignore the process that follows it. One of the biggest factors that are missed out of their calculations is ‘data analysis.’

Without knowing which acquisition channels work best and how customers respond to integrated strategies, they can’t put the finger on improvisation needs. App Analytics is thus, an indispensable part of a mobile app marketing plan.

What is App Analytics?

App Analytics is the collection and evaluation of the data gathered from the analysis of various metrics. Here are some of the questions it addresses:

  • How many users have downloaded the app?
  • What is the number of active users?
  • What are the most popular features?
  • Which channel brings in more people?
  • Are there any UX issues?
  • How are people engaging with the app?

You can use the info to tweak the old strategy, repurposing it to facilitate the users. It will also allow you to create an acquisition strategy that gives a better Return on Investment (ROI).

Talking about it, Carly Fiorina, former CEO of HP, aptly states, “The goal is to turn data into information, and information into insight.”

Key Metrics for Engagement and Retention

Millions of apps in the virtual marketplace are contesting for attention and visibility, and amid this severe competition, a rock-solid foundation is required to survive. We scoured six data analytics that will help to boost user engagement and app retention.

Let’s take a look:

1. Number of Downloads

It is the first hint of how your app is doing in the market. If this number is low, it tells you that there is a problem with your marketing funnel. Perhaps your App Store Optimization (ASO) is not up to the mark, or the app store listing is not good enough.

If you are willing to boost the downloads, consider using paid user acquisition strategies alongside ASO.

Number of Downloads

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However, note that this alone is not an indicator of success. A user may download your app because of a robust marketing campaign but never use it. Adjust analyzed 8 billion apps installed worldwide and found that on average, apps get deleted in 5.8 days after last use.

2. Daily Active Users (DAU)

The number of people downloading your app does not represent the total number of people regularly engaging with your app. Calculation of the active users helps you to find out your app’s value for the audience.

For a better understanding, you can also study weekly active users (WAU) and monthly active users (MAU). As per Google Analytics, an active user is one who has opened and interacted with an app within the last 30 days.

There are various analytics tools to calculate the ratio of active users. Each software has different criteria to measure the activity of a user. Google Analytics, for example, considers a users’ session if they open and interact with the app until 30 minutes of inactivity.

3. Stickiness

You can use the ratio of DAU to MAU for determining the stickiness of your app. It tells you how often a user logs into your app. The higher the percentage, the better. It means you have more chances of MAUs turning into DAUs.

It also helps to know which features are making your app addictive (sticky). You can drive more engagement by improving those features.

4. Session Length

The length of a session means the amount of time a user spends on your app. This metric tells you how engaging an app is. You will understand how a user is moving through the user funnel.

For instance, you are an ecommerce store that has its app. The session length tells you if the users are browsing products for a long time or if they close the app within a few seconds.

You can identify the loopholes and work on them to improve the experience for less-engaged users. For example, the AirG app increased its user engagement after it implemented the AirG spam-free safeguarded algorithm on its app.

Hence, by working on the shortcomings of your app, you can enhance the overall experience for your users.

5. Retention Rate

App Retention Rate varies according to the purpose of the app. It is usually determined by the number of users who return to your app after using it for the first time.

It tells how many users you retain after a specific time limit. Stickiness and Retention Rate goes hand in hand to see how addicted users are to your app. Once you understand the behavior of those who stick around, you can make critical changes to your onboarding flow.

According to a Localysts Study, 43% of users return to an app at least once within a month after installing. This number drops to 34% in the second month and reaches 29% in the third.

To diagnose why the users do not return to your app, you must calculate your retention rate over a daily, weekly, and monthly interval.

You can then attribute the gains or losses to a specific campaign, potential reasons, and known issues. Gradually, you can develop an app that contains what users need and want.

Chart

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6. Churn Rate

The opposite of the Retention Rate is called Churn Rate. It is the percentage of users who shut down your app and never return.

According to the data by Flurry, Andriod, and iOS apps have a retention of 4%, i.e., they lose 96% users. Their monthly churn rate is 8%, and you should target better than this for your app.

Churn rate is more significant if you are losing your most engaging users. It sends an alert that you must work on the fixtures of your app. Perhaps, there is no long-term value or excitement factor within the app. This is the time that you reengage the users through personalized messaging and incentives.

Final Thoughts

Monitoring the engagement metrics is the key to improve the retention rate of your app. You have to integrate these metrics for long-term success.

We suggest you figure out the ones most needed by your app and weed out all others. This way, you can achieve your goals within limited time and monetary spending.

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