While online and mobile shopping continues to grow, developers of e-commerce apps are facing a large challenge when it comes to retaining users over the long term. New data from Localytics, an analytics and marketing platform for mobile and Web apps, reveals retention for e-commerce and retail apps is lower than many industry averages.
In the U.S., 67 percent of retail app users will leave an app altogether (or ‘churn’) in the first month. This figure increases to 81 percent of users by the third month of an app’s download. On a global scale, the numbers become worse, with 76 percent of users abandoning retail apps within the first 30 days, increasing to 88 percent by the three-month mark.
Localytics saw better figures for the ‘best apps’ in the retail and e-commerce category, with the ‘best apps’ group containing the top 10 percent of apps in terms of size, as measured by monthly app users. These top apps see a 50/50 split in returning users and churned users after the first month.
The report reads:
This data might initially lead you to believe that apps aren’t worth the time or energy given customers’ propensity to stop using them. However, quite the opposite is true. More than ever apps are worth investing in, as the right strategies and tactics can harness the growing popularity of e-commerce, and turn a fickle, casual user into a long-time valuable customer.
Localytics encourages developers to work proactively, utilizing marketing tools like push or in-app messaging to target consumers with personalized content in an effort to stop them from leaving these apps before it happens, and the data is there to support this advice.
For instance, earlier this year, Localytics found apps (not just retail or e-commerce apps) that send in-app messages had 2 to 3.5x higher user retention and 27 percent more app launches than those apps that do not.
Localytics’ complete report is available here.
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