App User Engagement and Retention On the Rise

One of the basic measurements of an app’s health is the number of times it is launched, or opened, in any given period. Seeing the number of launches trend up and to the right over time is a good signal of an app’s usefulness because it means users are engaging with the app often.

According to our data, that upward trend is happening.

Localytics_App_Launches_Index_Q1_2015

In our recently published App Launches Index, we found the average number of app launches is now at all all-time high of 11 launches per month, up almost 5% over last quarter’s average.

And, the good news doesn’t end there.

Localytics_App_Stickiness_Index_Q1_2015

The first quarter of 2015 also saw dramatic improvement in the stickiness of apps, as seen in our App Stickiness Index. The Localytics App Stickiness Index measures how well apps are engaging users and avoiding churn, in aggregate. The improvement in Q1 was driven by growth in both User Engagement and Retention, which grew 13% and 41% respectively.

In other words, people are actively using apps and returning to them often, making apps more “sticky” and a part of our daily lives. That’s incredible news for app owners, as the more engaged users are, the easier it is to convert them into loyal and highly profitable customers. 

Despite these improvements, there is more work to be done. While user retention saw a dramatic improvement from 12% in Q4 to 17% in Q1, it is still lower than the three previous years on average.

Look at it this way: over ⅓ of users visit an app 10 or more times a month, but only 17% of them are returning 3 months later.

As our CEO, Raj Aggarwal said when speaking to Mobile Marketer about the Indexes: “As the role of apps increases, companies should continue to invest in them as a primary customer engagement tool. However, it is important that those same companies also focus on retention strategies like predictive app marketing that targets at-risk users, which improve app user retention across all verticals by offering content that is specifically designed for an individual app user.” 

Check out the Indexes to see more information, including an industry comparison for more specific benchmarks.

Download the Beginner's Guide to App Analytics by Localytics

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