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What is user retention?
User retention is a measurement used to determine how well users are engaged within the app after download. Measuring retention creates an opportunity to grow a devoted user base and increase revenue and LTV for the app.
How does paid user retention work?
User downloads and opens your app, but rarely comes back to browse or purchase. App advertising entices the user back, with a real-time relevant ad. The user clicks on the ad, and is directly deep linked to a specific product. User retention requires commerce marketing that builds a personalized shopper journey across all devices, channels and platforms.
How to measure user retention
Marketers should invest in retention at the same time they start to run paid media for user acquisition. According to eMarketer, only 11 percent of users are still engaged with apps after one week, therefore it’s important for marketers to invest in user retention strategies in conjunction with user acquisition.
The most common KPIs for retention are CPA, Conversion Rate, and ROAS, as they relate directly to the revenue returned from the paid campaign.