Retention Rate in Mobile Apps: How to Improve It Effectively

Struggling to keep those new users on your app? We get it. Seeing all your hard work unravel in days with a low retention rate must be infuriating.

But by analyzing this key metric and highlighting key issues, you can turn things around. Maybe your app has too many overwhelming ads. Or maybe you need to spice things up with some new content. 

Whatever the case, identifying why users aren’t sticking around is the first step to building loyalty. Let’s explore the best retention rate tips and tools to put your users back on the right path.

What Is Retention Rate in Games and Apps?

In mobile apps, user retention rate is the percentage of users still using the app after a specific period post-install. RR typically indicates how engaged users are with an app after they download and start using it. Analysts will usually track a retention rate’s progress over the first 30 days. 

Typical retention rate points that data analysts use on their apps include:

• Day 1 RR: Working out how many users return 24 hours post-install. 
• Day 7 RR: Highlights user engagement after a week. 
• Day 30 RR: Demonstrates % of users who are engaged for the long-term. 

A retention rate curve connects specific drop-off points to present a mobile app or game’s user retention journey during the first 30 days. Here’s an example:

As you can see, this app’s retention rate saw a huge 72.9% drop-off after Day 1, which is common. For the next 29 days, the decline in retained users tends to stabilize. 

In this case, 8.3% of users who installed the app on Day 0 were still using it on Day 30. This is a respectable figure compared to the following benchmarks.

What’s a Good Retention Rate for Apps?

This depends on various factors. What device is the app being used on? Where is it being used? What kind of app is it? Here are some general benchmarks that indicate a good retention rate:

• On iOS, average app retention rates are 23.9% at Day One, and 3.7% by Day 30.
• On Android, average app retention rates at 21.1% at D1, and 2.1% by D30.
• At 5.1%, Japan has the highest app retention rate by D30 of any country. China has the worst with 1.5%.
• The global app retention rate is 26% on Day 1, 13% on Day 7, and 7% on Day 30.
• At 26%, APAC is the region with the highest D1 retention rate. North America has the lowest, at 23%.
• Of all categories, news apps consistently have the highest retention rates by Day 30 (9.1% in 2023). In contrast, photo and video apps have an average RR of 1.37% by Day 30.

Across devices, countries, and regions, a respectable Day 1 app RR is about 24%. The average Day 30 app RR typically ranges from 3-4%. But how exactly do you calculate an app’s retention rate?

How to Calculate Retention Rate in Apps

In general, calculating the retention rate is pretty simple. It requires the following formula:

You divide the number of retained users at the end of the set period by the number of users at the start of the period. Then, you multiply the result by 100.

To effectively use this formula for your app’s needs, take the following steps:

1. Select a cohort: Group users based on when they first downloaded or used the app.
2. Set the period: Typical periods include Day 1 (next day), Day 7 (next week), and Day 30 (next month).
3. Measure retained users: Count the number of users who returned to the app in the set period.
4. Apply the formula: Divide retained users by the total cohort size and multiply by 100 to get the retention rate.

Here’s an example that demonstrates the steps in action:

Let’s say 48 users downloaded and used your app on Day 0.

Four of those users returned on Day 30.

This is how the formula would look:

Retention rate (Day 30) = (4/48) x 100 = 8.333%

Once you know your app’s retention rate, the next step is understanding why…

How to Find Causes of Low Retention Rates

Before attempting to improve RR, identify why your users might not be returning. Here are some common causes behind low retention rates:

• Poor engagement: Users can drop off if you don’t hook them quickly. Too many push notifications, or irrelevant ones, can cause disengagement.
• Complex onboarding: The app might have a steep learning curve, or doesn’t provide easy steps to get started.
• Too many ads: Excessive in-app ads can harm the user experience. Also, overwhelming ads can harm your RR.
• Attractive competition: Users might switch to competitor apps that deliver better value and user experiences.
• Performance issues: App glitches, bugs, crashes, and slow loading times can repel users.
• Lack of value and content: Users might not find the app useful. Also, a lack of new features or content updates can make an app seem stale.

There are many more potential causes of low RR. And they might not all apply to your app’s circumstances. The key is to pinpoint which issues are affecting this metric. 

With AI-driven analytics solutions, you can identify user churn patterns, areas of improvement, and actionable insights to boost RR.

8 Tips for Improving Retention Rate in Apps

So what are the most impactful retention rate boosters? And how can you implement them? We’ve shortlisted the best eight in the following table:

Retention Rate Booster	It’s Benefits	How to Implement
1. Gather user feedback	– Helps understand areas of improvement – Can improve user experience – Understand why users leave – Address user issues	For current users: – Regular surveys – App Store reviews For churned users: – Exit surveys – Feedback forms
2. Leverage product data	Can learn user patterns and behaviors	Analytics tools to track user behavior and optimize app features.
3. Simplify user onboarding	– Gets users up to speed – Reduces confusion – Makes app mechanics clear early on.	Easy step-by-step tutorials
4. Perform A/B testing	Helps understand which features users engage with most and least.	Testing different versions of features.
5. Build a strong community	Promotes networking and connections, building loyalty.	– Chat features – Forums – Social media groups
6. Introduce a rewards system	Encourages users to return to the app and use it routinely.	– Discounts – Points – Badges
7. Include new features and content	– Boosts user interest – Keeps the app fresh	– Seasonal content – Feature updates
8. Establish a personalized, on-screen presence	– Makes app more interactive – Keeps users engaged	Segmented and relevant push notifications (54% conversion rate)

Retention Rate Boosters: Examples

Here are some real-life cases of each retention rate booster: 

1. Netflix gathers feedback via reviews and user surveys to improve user experience.
2. Spotify analyzes data to track listening patterns and recommend personalized playlists.
3. Freemium book-summarizing app Blinkist excels in user onboarding. 
4. Money-saving app Super.com uses A/B testing to understand what users value most. 
5. Discord is a great community builder for users to create and join topic-based chats.
6. Mobile RPG Genshin Impact offers rewards and bonuses to encourage continued play.
7. Fortnite Mobile adds regular updates (e.g. skins and weapons) to keep gameplay fresh.
8. Language-learning app Duolingo uses special push notifications called “triggers.” These encourage users to repeat actions like daily language exercises.

Use the Right Tips and Tools to Retain Your Users

In conclusion, there are two key steps to take to improve retention rates. You need to 1) understand your app’s core issues and 2) use the right improvement strategies. With these steps, you’ll boost your user satisfaction and loyalty in no time.

And with powerful, AI-driven analytics tools, you’ll gain deeper insights into user behavior. This will set up your app for higher RR in the future.
To enhance retention efforts, you should also track user metrics such as churn rate, session length, and frequency.