Webinar: Uncovering the user lifecycle with CleverTap

Jul 19, 2019

Marketers often measure LTV in short-term cycles, focusing on monthly usage and ignoring long-term loyalty. To make matters worse, they fail to cater campaigns to users based on engagement and frequency of use. This mindset results in missed opportunities to develop individual journeys for your audience. The user lifecycle is an intricate journey that can be leveraged to optimize your marketing campaigns, extend LTV and generate greater ROI. It’s a new, and incredibly effective, approach that starts with learning why users are leaving your app and what keeps active users satisfied. Kara Dake, VP of Growth and Partnerships at CleverTap, and Daniel Oh, Product Marketing Manager at Adjust discuss what you need to watch and do at every stage, providing you actionable advice on how to manage and improve the user lifecycle.

Timestamps

To help you zero in on topics and sections in the webinar relevant to your app, just use the timestamps below:

3 ways to optimize the user lifecycle: increasing retention and lowering churn

1. Use cohort analysis to establish a baseline and learn retention trends

When looking at the user lifecycle, understanding the average retention rate for your app is critical. As Daniel explains: “When you break your users down into specific cohorts, you can find exactly when users give up on your app and identify the cause.” He adds that the easiest way to do this is to measure retention using acquisition cohorts, allowing you to learn when users enter your app and when the drop off happens. This must be established before you can think about other ways to improve retention. Those cohorts can then be used to learn trends in your retention process and why specific users return.

2. Monitor install-to-registration rate to optimize the onboarding process

Benchmarks and case studies are a great way to learn several user lifecycle optimization methods. For example, Kara explains that 78% of new users register within a week of installing Media apps, advising marketers to “closely monitor the install-to-registration rate in order to optimize the user onboarding process.” Kara also adds that it takes the average user eight minutes to register upon their first time opening the app — a benchmark that can be used to indicate the quality of your app’s user experience.

3. Track uninstalls and reinstalls to inform your retention strategy

When creating campaigns to raise retention or lower churn, it’s critical for marketers to have access to uninstall and reinstall data. These are two points of tracking you need for your funnel and trend analysis because they can inform your retention strategy. As Daniel explains, “when it comes to churn and retention, it's all about engaging users throughout the app journey. Once you feed Adjust’s Audience Builder with uninstall and reinstall data, you can analyze when and why users churn and what makes them come back.” This is because you’ll know the events that occurred before uninstalling, highlighting if certain parts of your app experience are driving users away.

Once you have reinstall data, you can also analyze which messaging retains the most users. Daniel notes that “once you have this data and apply it to your marketing messaging, you can increase LTV and retention by optimizing your app experience, using uninstalled data to ensure users don’t churn.”

If you’d like to learn more, take a look at our ebook devoted to all things retention. This covers the importance of retention compared to user acquisition, key retention tactics and how to leverage your data to lift ROI. You can also find the full transcript for our webinar with Clevertap below.

Uncovering the user lifecycle with Clevertap: Full transcript

Welcome everyone to the Customer Lifecycle Management Webinar. Today we're going to be talking about life cycle strategies of the customer journey. And joining us today are myself from CleverTap and Daniel from Adjust. So, I'm Kara Dake. I'm the VP of growth and partnerships at CleverTap. I specialize in mobile user engagement and retention. I have a background in growth marketing partnerships, busdev, and finance. I'm an active supporter of the technology ecosystem, and advocate for women in mobile and digital. And I'm a member of the Global Panels & Partnerships Committee of mBolden, which is an organization dedicated to connecting and empowering female leaders throughout the industry.

Hi, guys. I'm Daniel Oh. I'm product marketing manager here at Adjust. Throughout my career, I've worked mostly with B2B SaaS companies. So, a lot of my career has been trying to leverage the data behind the marketing of these products and also trying to create good stories around them so that they're better positioned and engaging within the market. I work as a market research analyst, a content marketer, and a product marketer throughout my career. And, you know, the core thing that ties all that together is just really my interest and passion in trying to create good stories behind these products that can be very technical and abstract on the surface but are very compelling once you get to the bones of them. So, really happy to be a part of this webinar, and thanks.

So, today's agenda, so we're going to first introduce the kind of intricacies of life cycle and really go into the weeds as to why it's not just a point A to point B thing, that it's a very intricate thing that requires a little bit more strategy in thinking behind or to leverage better for your marketing campaigns and for the overall growth of your business. Then we're going to understand a complete picture of strategies against specific life cycle stages including industry benchmarks compared to as well as case studies to kind of give you a better view of how different businesses are approaching life cycle and using that to create better ROI and LTV.

We're also going to look at retention, what these benchmarks are for certain protocols and also the importance of tracking uninstalls and reinstalls especially when it comes to creating campaigns to both raise retention and to lower churn. We're going to look at the average churn rates for these verticals one day and one week after the install, and then we're going to talk about the potential of these retargeted users from a revenue perspective.

And a little bit about CleverTap and what we're up to. We help marketing product and growth teams at B2C companies optimize their customer experiences at scale. So, how we do that at scale and real-time is with our unified user data platform. We provide actual insights and segmentation of your users. And then from there, we offer a number of omnichannel engagement features like push notifications, in-app messaging, etc. to help you create personalized messages in real-time to your customers. And here are some of our highlights of our customers here for you to view.

All right. So, Adjust, we're a mobile measurement platform. We're focused on trying to put your entire marketing funnel into one unified platform, that starts with our core product of attribution. We tie the users to that as they interact with, and that gives you better visibility into which campaigns, which partners are giving you the most ROI, and, you know, actually following through on the promises of growth.

We buttress that both by giving you unlimited data access and great analytics and reporting. Both are very important to first inform the mobile marketer into which channels and which campaigns are just performing, but also into the post-install events in figuring out where the user is in that certain part of the life cycle, and trying to inform other parts of the app experience based on that data. And this data can be, you know, shown both in an aggregated form through our dashboard. It can be fed directly into your BI through callbacks, or it can be through CSV exports to your preferred cloud storage provider such as S3 or Google Cloud Storage.

On top of that, we also have an ad fraud protection suite. We call it the Adjust FPS, Fraud Prevention Suite. This is something that every MMP has because fraud is best fought at the point of attribution. Our Fraud Prevention Suite, we believe is one of the best out there in the market, which is fully preventative, and we built it with the aim of trying to take the paint point of dealing with ad fraud out of the hands of the mobile marketer, and really just try to shield the mobile marketer from any type of claw backs, or refunds, or making decisions based off of bad data, just removing all of that so that the mobile marketer can just focus on the core part of his job which is growth.

And we also have another product which is very relevant to the topic that we're talking about today which is our Audience Builder product. We have this product which makes in-house audience building very easy instead of making it a multidepartment, you know, hurdle where you have to get engineers to give you device ideas and figure out the parameters, which all these device fall under, and then sending it out to the network, which can be a weeklong process depending on how many stakeholders are involved.

With the Audience Builder, you just set up parameters, the device IDs have already been correlated. You send that via dynamic URL to the partner and that’s it. It's a one to two-hour process. That makes audience building and segmentation really easy. And on top of that, like all of our other features, it's completely GDPR, data privacy compliant, something that we take very seriously here at Adjust especially as we're a German company. And we’ve built data privacy and data security into the DNA of all of our products.

So, now that you have a good idea of both what CleverTap and Adjust do, let's go right into it. So, the one thing that we want to establish right now is that the user life cycle is complex. It's not point A to point B. It's not add impression and click into install. There are so many other stages within the user life cycle that you have to consider especially when it comes to retention and churn, which we'll go into later.

As you can see through this diagram here, you know, the point of install is actually really the first stage of that life cycle where there's other reengagements. There could be uninstalls involved, and then subsequent reinstalls. If there's, at any point, a user having the app install but not interacting with it, and then there are campaigns to bring them back into the fold, that can be considered reattribution.

And there's other conversions that could be unique to your app depending on different events such as if you're a ecommerce app, in-app purchase. If you're a gaming app, if the user reaches level 10 or 20, which by that time you can, you know, establish stickiness. If you're a travel app, you know, other types of purchases or other types of engagements as well.

So, looking at user retention, these are kind of the five things you ask yourself every time you want to just get a handle on retention. First is what is my retention and does it differ by user segment? Basically, it's really important to understand what the average retention rate is for your app. And when you break your users down into specific cohorts, you could find exactly when they give up on your app, and start to identify what it exactly is that’s making them leave.

The easiest way to do that is to measure retention quickly and that is by using the acquisition cohorts. So, basically, just taking a look at when these users come into your app and seeing like within a 30-day, or 15-day, or 7-day period, however you want to define it and just trying to figure out, you know, when the drop-off actually happens. So, you have to first establish that before you can even think about other ways to improve retention.

Second question, are there trends to my retention metrics? Basically, you have to see where the retention is going. You have to see the patterns and really get a handle on those. It's better to build separate retention curves for each cohort as I recommended before to use cohorts to even get a handle on your initial retention. That way you can identify overall trends in your retention process, so that you get a more granular view into the actual retention process based on these different cohorts and based on these different segments.

Third question, what features actually drive my retention? So, retention is all about getting users back to the app. So, it's really important that we kind of make this distinction right away. Retention does not necessarily equal engagement. Retention is all about users coming back on a regular basis. It's not a targeted engagement point to drive them back. It's the users actually coming back of their own will.

So, you have to figure out exactly what it is about your app that brings them back. If it's a game, it can be some type of, you know, the actual core of their game that makes it sticky and makes people engaged, and want to continue developing their characters or their levels. I know one example, for instance, with Candy Crush, they have these daily rewards. So, if you sign in, you get better and better rewards. And that encourages customers to just get these, you know, powerups so that they can reach to the levels and not get stuck. So, that’s one way to, you know, define a feature that’s specifically built to drive retention and keep users engaged.

Fourth question, what behaviors lead to user retention? Basically, you have to find out why these users are staying in your app or churning out. And you have to find out which specific behaviors these individual users take, and see how those affect retention of these users over time. You can do these through behavioral cohorts. So, instead of looking at all your new users, you can look at all your new users who perform a specific action, or set of actions, and see how that’s correlated with their retention. So, with these behavioral cohorts, you can look for these features that bring users back to your app time and time again.

And finally, when it comes to predicting long-term retention, you have to look at the relationship between certain user actions and retention that you can then identify as the main behaviors and actions that are correlated with long-term use. An example that we could use is how Netflix figured out how many episodes of a show that the average user would need to watch before they became hooked. These two examples, for instance, “Breaking Bad.” You know, everyone knows that amazing show. It took just two episodes for the average user to get hooked. This is to the tune of 70% of average Netflix users.

So, if you're, you know, within that 70%, you have to watch episodes 1 and 2 if you’ve never seen “Breaking Bad” before, then it's a great chance that you'll just continue it throughout the entire series. For a different series such as “How I Met Your Mother,” it can take up to eight episodes for the average watcher to become hooked and become invested in the show, and start watching from beginning to end.

So, this is just an example to help you flush out ideas or different ways to measure how long-term retention actually starts holding a stickiness, it actually starts to establish with their average user.

Great. So, now we're going to dive into some specific strategies in the media and travel verticals. So, these are examples and benchmark industry data. So, they are applicable to these two industries, but I want to note that they may also be applicable to other verticals that your apps are in as well.

So, just take note of that as we're giving examples. So, first, we're going to go into media OTT, over the top, basically as a description of a media type, and that includes, you know, television and entertainment. And we're going to talk a little bit about what's happening in this industry in terms of how you can push people along the customer life cycle journey

A couple stats here from close to 100 plus streaming services in the U.S. alone in this media ecosystem. It's a market that’s showing a compound annual growth rate of 17%, incremental growth of 64 billion. And we're seeing a number of 20 billion smart devices in 2020 in this industry. So, definitely rapidly growing and one that we feel is really important to touch on today.

So, we like to talk about these moments in time where you can really move your customer along in their different, in the experience they're having in the app, their critical micro-moments. And we pulled out some of the key micro-moments within the media and OTT industries.

So, first here, looking at searching, one would be able to search by, say, a director or browse by a genre, say, in Netflix as Daniel was mentioning to find that “Breaking Bad,” that show. That’s a key micro-moment where you can do employ a number of strategies to continue them in that process. Also discovering, so finding trailers and other types of content recommendations.

Viewing content, there's different, you know, length of viewing, types of viewers and segments of users that you can bucket into different groups depending on their different, you know, viewing habits. And then social sharing, this would be a way to drive further adoption and additional viewing types. So, these are just a couple of the micro-moments that you can start to look at. And we find that, you know, really, the user onboarding process is huge.

It's important for every single, you know, type of app in every industry, of course, and where we usually see the most drop-off. Post download is within the user onboarding. So, with a great user onboarding experience, you can actually improve your user adoption by seven times. So, this is where we're going to talk a little bit here about some strategies and how you can improve that user onboarding experience.

So, there's a number of user onboarding benchmarks. And we pulled this again from our specific report in those stats I gave you before. And so, we're concluding these are industry benchmarks due to the size and scale of the data that we were able to analyze. And we see that, just to give you some, you know, an idea of a range as you're looking into your own app, we see that 78% of new users are registering within a week of installing the app.

And so, it's really just looking to see what percentage of users are installing the app to create an account. And here, you want to closely monitor the install-to-registration rate to optimize the user onboarding process. And then second industry benchmark here is it takes eight minutes on average for a new user to register after first launching their app.

So, this is a really good indicator of the value a new user is seeing in your app based on that length of time. And of course, that’s something you want to optimize with a good user experience. So, some of our clever tips here are to greet your users with a welcome message on that first app launch. You want to nudge your users to register by an in-app message that focuses on subscription benefits or popular content. It's, of course, the really important part of any user experience and really highlighting the value proposition of your app right away. And then of course, having a brief product tour that covers what's happening inside the app to give them highlights before they move further in the process is also a big driver for improving that user onboarding experience.

Personalizing the content that they're going to receive is something that our platform can help you all do, and it's really becoming super data-driven at this point where you're able to segment your users and identify specific types of content that are relevant to your users. So, this is something that you, of course, want to do and is very tailored in the media industry as well.

Great. So, now touching back into more industry benchmarks around the user onboarding experience, which, of course, is key, we're seeing in media that 26% of new users are engaging with media at least 3 times in the first month. So, this is something, again, to see where you line up against this. And 72 hours are spent on average for users to play media 3 times and move to the next engagement phase.

So, these are really, you know, specific phases to look at and benchmark your interaction against, and see how often your users are acting with your content and how frequently this is happening. So, clever tips here, ask your users about their favorite genres and categories to start developing a personalized experience. Before you have any real information, you can start to just ask, ask them and they’ll let you know.

And then from there, you'll be able to see which content they're actually engaging with, and then based on their psychographic and demographic data, you’d want to make recommendations of other types of content that are useful for them based on their own browsing and interaction data as well as I mentioned the other segment in data, the data around the segments that they also fall into.

And then you'd want to prompt users to opt in for push notifications to increase reachability. This is really a key engagement strategy that we see as often the most effective and widely used. So, optimizing for them receiving push notifications is a huge driver for engagement.

Another key strategy here is to keep your users engaged is to convert your premium watchers into premium subscribers. So, just noting that if this is something that you are employing with your media app that we'll get into here a couple ways to drive engagement to help you to do so.

All right. And we're still on this user onboarding tip here as it's so important. And we're seeing that on average, in the industry, 5% of users are on average clickthrough to push notifications. That’s the average clickthrough rate. So, not super high here. So, looking at there's a lot of opportunity to really improve that number.

And we see that 16 is the average number of app launches per user in a month. So, actually, that’s pretty high number if we think about it. So, there's a lot of opportunities to really continue to keep driving that number up. And so, a couple of our tips here are to nudge users to resume any abandoned media that they had last played to increase the content completion rates.

We also want to use in-app notifications with content recommendations on app launch. So, that’s really going to, you know, right as they open up the app, provide them with ideas for what they might want to engage with based on their previous browsing and viewing history as well as demographic and psychographic data.

And then finally, want to facilitate new content discovery, right? So, based on previews triggered on the app launch. And so, we have a number of features that can help you optimize what are the best campaigns and times to do so.

And of course, you want to use an omnichannel engagement campaign strategy to keep your users coming back for more. So, as I mentioned, some of the engagement features that you'd want to look at are push notifications, in-app messaging, SMS, email. If you have a web experience, you can utilize web popup and web push. And then Facebook remarketing is another strategy that we see is really strong. So, it's really about pulling the whole picture together for your users in terms of engagement to drive retention as a part of this overall customer life cycle management strategy that we're talking about.

Okay. And so, now we're moving into actually the retention pieces. And so, we're seeing that 24% of the travel industry apps that we're using have…or 24% is the average stickiness rate, which is basically how many users are engaging, how often users are engaging with the product or a feature. So, the higher your app’s stickiness quotient, the more frequently your monthly active users are returning to your app. So, of course, you'd really want to have that to be a high number.

So, some ways to increase that in the media industry are by notifying your users of new releases, and reminding them to resume unfinished content. You can nudge your users to add content to their watchlist, and then remind them of what items have not been watched on that watchlist. And then you can also incentivize your users to commit to longer subscriptions by offering discounted or access to exclusive content.

Okay. And so, tackling churn, so why are your users not engaging? This is, of course, a huge issue, and we see that 67% of users are churning within the first 2 weeks in the media industries. So, a lot of opportunity to improve in that as is the case across all verticals in the mobile app space. But that’s a number that I wanted to share to kind of give you an insight into, you know, comparison in how your app is performing.

So, reasons for why one may uninstall or churn can really vary. Of course, it's UX and UI. So, working with your product team to determine where those drop-offs might be occurring. Of course, functionality and performance in the app are big. So, working with your technical team on that. And then the engagement experience, which is what we've been talking about previous to this, and often where we see the most opportunity. And, you know, it's really great because you’ve got tools like CleverTap and Adjust that can help you identify where the performance of your engagement can be improved.

So, if your users have uninstalled, there are points into how to get them to reinstall. This is a really strong reengagement technique that we like to let you guys know that you can work towards, and we have features that help you identify when users are uninstalling. So, going back to this in the media industry here, we're seeing that within the first 30 days of the first app launch, 35% on average of users are uninstalling. And then 20% is the average reinstall rates within 30 days of app uninstall.

So, actually, that’s a pretty significant number and an opportunity to see that some of the users may have uninstalled but potentially like to do so again. So, ways that you can improve these rates are to eliminate the friction points between your apps by tracking user behavior path analysis tools such as our CleverTap Flows feature. You can also win back users with time-sensitive targeted promotional offers. And then request user feedback to understand the reason for uninstalls.

We see this to be really effective where you can actually, you know, send a user an email asking for, with a survey embedded in the email, asking for feedback onto why they uninstalled. And this may actually drive them to reinstall as well as give you that critical feedback to help improve your potential feature performance as well as the UI and UX experience.

All right, cool. So, I know we're going deep here into this, but this is what we wanted to create an experience here for you guys in the webinar to be able to give you some really deep insights into these verticals. And I would like to jump over into the travel sector, which is another really interesting vertical, one that’s growing quite a bit.

We're seeing massive growth actually expected to be over 1 billion in 2022. Mobile travel bookings have increased over 230%. This is a little bit old data, but we're continuing to see this growth. And over 5% of all apps are travel apps. So, actually that’s a pretty large number, and we're seeing that it's a very aggressive marketplace for market share. So, that’s why we want to dig a little bit deeper here with you guys and help you get ahead of the curve.

And for this data, just to note, we analyzed 55 billion events and their performance on more than a billion devices in 2018 to pull together this data for you as well as our clever tips to help you optimize. So, going back to that user onboarding period timeline which is really important for you guys again.

I wanted to note that due to the sheer number of travel apps available, app-based travel business has really have their work out for them when it comes to attracting and retaining users. And so, actually, the average travel app loses 64% of its users after 30 days. That number increases to 76% after 60 days. And then, after about 3 months, that number has moved to 82%.

So, this is, again, just, you know, noting some challenges as we know is across the board. And here are some ways to optimize that onboarding experience. So, opt-in rates really signify the percentage of users who have given you the permission to reach out to them by a various channels as I've mentioned like in-app, push, email, SMS, etc.

We're seeing that 63% of first-time users for these marketing cappings opt in to the experience. And so, ways to improve that are to welcome your new users with a personalized in-app message on their first launch. You can also promote opt-ins by conveying the value notifications provided to users that we talked about before, really showing them and telling them why it would be optimal for them to experience the notifications especially in the travel industry as you can see how potentially useful and timely these notifications will be to their experience. And then understand where users are most active in your app to engage them at the right time.

So, 18 minutes is the average time that new users take to log into the apps. So, that number could definitely be optimized since you want to decrease that time to first log in. Ways you can do so are to welcome users with email drips that guarantee a response. You can also, of course, AB test your creative in both the in-app and email welcome messages. And then use social logins to reduce time to value and get to that. And you'll also be able to pull in their detailed profile information, which will help you optimize the user segmentation and other pieces of the app experience.

Okay. So, ways to drive users to engage. I'm going to mention these here. And of course, there's a lot more that you can look to in our travel report. You can send offers and coupons to first-time users via SMS. You can utilize their location and send personalized recommendations based on the specific region, and language, and time zone in their end. This is, of course, hyper-important for a travel industry, a travel experience.

And then also really seeing that you're going to optimize their experience by utilizing a deep link, which is a link that’s embedded into the channel that you’ve reached in, whether it's a push notification, or email. And that deep link takes the user directly back into the page that they were on before the booking page, for example, versus having to navigate through all the different pages. And I don't know about you, but when I'm late for a flight, I want to go right back into that page that I meant to continue to check in, for example, versus going through all the other experiences. So, those are some ways to optimize the onboarding to engagement experience.

Okay. So, clickthrough rates. Now, these are rates that help measure the effectiveness of your marketing campaigns and help you understand if your messages are generating the response that you needed, are they prompting users to open your app. Okay. So, we're seeing around 8% average clickthrough rates for campaigns in the travel industry.

And so, ways to increase these numbers are to find the optimal day and time to engage with your users. So, we were able to see that these clickthrough rates are higher on messages sent between 8:00 p.m. and 11:00 p.m. People likely planning out their travel for the next day or the next week as they're winding down their day.

You definitely want to make your user feel valued and personalize the message based on, you know, the specific experience. So, we see when you mention someone’s name in a message. And if you, you know, mention something that one of their interest based on their previous experience. This is what you want. You want to get to the most, you know, personalized customized experience as possible where it doesn’t feel spammy.

Also interesting is you can use an alert sound in your message, which really reinforces brand recall. So, that’s pretty cool. And again, this is like engaging them in their different senses and different ways to feel as a part of this brand experience.

Now, cart abandonment rates, pretty high in travel as people are likely, you know, browsing in different platforms to get the best experience and best pricing. So, a lot of opportunity to reduce this cart abandonment, and the ways you could do that are to analyze the different paths that users are taking inside your app to resolve any friction points that, of course, goes without saying in what we talked about before in the product experience.

We also want to look to see, what is this golden window of time to engage and bring back dropped-off users? This is something we look at a lot and similar to the micro-moments we see that there are specific time windows where they're really critical where you can see that if you actually send them, say, a personalized message within that window of time.

And our tool can help you find what this time window is, but say 15 minutes is really this time window that you want to remind your users that they were about to make a purchase. And if, say, you see 13 minutes have come by and they haven’t engaged or completed their purchase, at that point, you could send them a personalized offer to drive them to do so. So, then you’ve got that, you’ve identified that golden window, and then sent them a custom offer, and they will be much more likely to complete that activity. So, these are all some really detailed but super important ways to optimize this engagement experience.

Now, we're moving further into that life cycle stage. We're moving from engagement to retention. And we're seeing that about 63% of users that have converted and used in the app will move to the retention stage. So, that’s pretty powerful. And some ways to continue to drive users to retention are to learn about the user preferences and interests using psychographic segmentation.

So, this goes beyond just demographic segmentation, but it's things, you know, more personal interest-based profile information about a user. You can understand what categories are popular to them to drive conversation. And then focus on the users with the highest chance of being retained, which you can put into a bucket called a potential loyalist user segment.

And finally, some more ways to increase your user retention where we're seeing, you know, average stickiness rate of about 28%. And this is in the travel industry. So, opportunities to increase this app stickiness, create user segments based on in-app behavior, and create automatic campaigns that engage user source about to drop off. And then tell inactive users, “You missed them.” And inform them of new features by a personalized email.

Ways to improve retention rates which we're seeing are close to 50% after 30 days in the travel industry, which I've mentioned, want to monitor your trends? Use cohort analysis to compare different user groups, and then tap into those omnichannel campaigns which I mentioned before to reach your users at the right channel, at the right time.

We're seeing about 35% of users are churning in 2 weeks. So, really understanding what users are up to before they uninstall your app, and remind them of unexplored features or benefits of your app are ways to prevent that.

Back to that uninstall, you know, scenarios that I talked about before in the media industry. These are pretty much the same as I mentioned before if you want to go deeper into this, you can check these out in our travel report.

Great. Thank you, Kara. Those are some awesome tips. Definitely very helpful in trying to head off churn and try to increase retention. So, before us right now, we have three major verticals here: ecommerce, entertainment, and travel, split across three of the major geos, Europe, North America, and APAC. And as you can see here, churn is pretty much across the board going to be around 40% to 50% within the first 7 days, for instance.

You see how ecommerce apps in Europe. There you go from 19.98% of users are engaged within the first day, but then comes to be 7, that number drops to 11.93. And that’s one of the better stats that you see across here because if you look at how travel apps do in North America, it goes from 14.51% on day 1 down to all the way to 7.41% on day 7. So, that’s more than a 50% churn rate. And there's a lot of different factors that go into it that Kara also mentioned. I mean, it could be anything from a user installs a travel app in North America. They just want to look up flights for their vacation, or family trip, or whatever. And then once they actually got that flight booked, there's no reason for them to come back to the app.

This is something that’s, you know, across all industries, across all verticals. And the stats here we gathered were both on Android and iOS, and were gathered last year in Q4. So, pretty recent numbers, and it gives you a good idea of the issue that churn is. It's not specific to any one vertical, but it can be something that can be fixed.

So, if you look at the churn, on average, almost 80% of users have churned the day after the app installed. And this is, you know, looking at our numbers here. And when it comes to 7 days, only 12% of users are still seen as active.

Now, there's a lot of different reasons why people churn. And Kara, you know, did a great job of, you know, exploring all these different ways as to why app friction or certain app experiences drive users away from the app.

What we want to do here is we want to not just, you know, tell you an issue that you guys probably already know looking at your dashboards, also just try to change the thinking around churn. So, churn isn't supposed to be a way of life or just something that has to be fixed on a product. It can also be an opportunity to get these users back into the fold.

As you can see in the dark portion here of the graph, churn users are, you know, by far the best plurality of all the users that have gone through the app within your first seven days. And they don’t have to stay churn. They can be brought back through, you know, reengagement campaigns and through all these other engagements that Kara mentioned earlier.

Now, looking into churn, if you just churn, do they ever come back? The answer here is yes, looking at our numbers here. An estimated of 17% of churned users to return to the app after a 2-month break. After 3 months, it goes to almost 11%. And after 6 months, it goes down to 4%. So, there's a way of diminishing returns there.

But this is looking at, you know, the industry as a whole. So, this can be both users organically coming back based on…my past example for instance, like if you’ve downloaded a travel app, you’ve got that trip, and then you don’t really have any reason to go back to it until you have another trip, then that could be another organic reason to come back.

If you're a gaming app, someone can pick it up for a week or two, kind of get bored with it, and then, you know, they might be stuck in a situation where they need a game that can play on airplane mode. I mean, this is something that I run into a lot of with my own gaming apps on my phone. Like, I don’t pick them up unless I'm on a six-hour flight. I need to kill some time.

So, all these different ways. And there's also, you know, reengagement campaigns involved here as well. So, if there are targeted efforts to bring these users back into the fold, there is evidence here that churn users do come back. They don’t have to stay churn. They don’t leave right off into the sunset and never come back. There's an opportunity to get these users back.

So, this goes back into the performance tracking portion of it. So, you have all these great campaign ideas to get these users back. But in order to really track the performance and the efficacy of these campaigns, you have to figure out first when, how, and why these users uninstall. And then, once you have that data, and once you go back to the network and say, “Hey, these users uninstalled. I want to retarget them and get them back into the app,” you have to then figure out how good these campaigns are by tracking their reinstall rate.

And this is especially important when you're trying to vet your different campaigns and try to create quality control on these campaigns to make sure that they're working the way that you intend them to especially if you're seeking money into these campaigns.

So, in order to really tap into these churn users as an opportunity to improve the LTV and ROI and to get the type of precision targeting you need on install and reinstall tracking is very important. And these are the two points of tracking that you need in order to get really good funnel and trend analysis, and really inform your decisions on how to approach these churn users and how to figure out the most efficient way to get them back in.

So, when it comes to churn and retention, it's really all about influencing and engaging users throughout the app journey. And I mentioned before, we had audience builder tool. Once you power that with your uninstall and reinstall data, first, you get deep inside to when and why your users churn and what makes them come back. So, using the uninstall and reinstall portion, you can figure out, first, when the user uninstalled, and then that gives you a timestamp of the type of events that they went through to before that uninstall happens so you can then figure out patterns to see if a certain part of your app experience is driving these users away.

And also, once you get the reinstall data, you can figure out what type of campaigning, and messaging, and engagements actually make them come back. On top of that, so once you have these data and you have all this information and are able to really apply it to your marketing messaging, you can then increase user LTV and retention rates by reactivating your churn users and really try to optimize both your app experience using uninstalled data to make sure that these users don’t churn. And when they do, you understand which campaigns are actually bringing them back.

And that also leads to increase ROI not only by, you know, improving your reengagement campaigns, but you can also go back to the point of initial install, and optimize to the channels and networks that drive you the most engaged users that don’t drop off. So, you can then use that uninstalled data to find out which networks are giving you the users that don’t churn, that they have the lowest uninstall rate. They gave you the users that are quality users and stay engaged, and the type of the users that actually drive the growth of your app.

And then with our audience builder, you can then create highly targeted audiences based on the users place within the funnel. So, like I said before, the tool itself really just makes it easy to segment these users and create these extremely targeted audiences that you can then send on to the network and partner, and then provide hyper target and messaging that will actually get them back in. And then you can then sync all the uninstall and reinstall information to your own CRM system to power up your own engagement strategy.

So, thank you for sitting through all this. It was a lot of information but just to kind of close this out, so I’ll just introduce who we are. We're at about, you know, 300 plus employees, which is pretty good for a mobile measurement partner. We're at 15 offices. We just opened one up in Tel Aviv, that saw our recent acquisition of Unbotify.

We have about 25,000 plus abstract out there in the ecosystem, and 42% of market share based on ad spend measurement. So, basically, we looked at the total number of ad spend that was being out there and seeing how much of that was being run through to Adjust SDK, which is how we arrived at that number. So, we have a pretty good hold on the market when it comes to actual ad dollars and ad campaigns being run through our system.

As something that we're proud of ourselves on, we track about 400 plus billion data points per month. It's a huge scale, something that, you know, comes with a territory of tracking every single touchpoint that happens within the engagement cycle, and also, you know, all the post install events as well.

And right now, we're about a billion daily active users being tracked. So, there's a lot of different people interacting with apps that have our SDK. So, we have that kind of data rushing through our system and giving us the kind of insight to allow us to provide this kind of information when it comes to the conclusions that we have.

We also are at a pretty large scale. We've got over 8,000 customers, reach over a billion devices, 2 billion in incremental revenue, and 25 million campaigns sent per month.

Want to get the latest from Adjust?