Why Retention Rate Matters to Your App or Site

There are many different metrics that app developers and website owners use to evaluate the success of their monetization efforts, including eCPM, EPC, ARPDAU, and a ton of other acronym-filled terms. However, since we began observing app and website monetization trends in 2009, we have noticed that one metric continues to be the key to successful monetization efforts: retention rate.

What is Retention Rate?

According to Mofluid, retention rate is "the percentage of users returning to your app in a given period of time." Retention rate is typically measured as a percentage, and can be measured for your app or website in various time periods, including one day, week, month, or year. 

Why Retention Rate Matters to Your App or Site:

A few of the many reasons why you should monitor the retention rate of your app or site include:

Increased Competition:

The internet is a crowded place, with the competition to gain users increasing every year. For example, since 2010, there has been a 611.4% increase in apps listed in the App Store alone (Pocket Gamer). There are also now more than one billion websites (The Atlantic). Thus, with gaining new users for your app or site getting tougher each day, retaining your existing user base becomes even more important.

New Users Aren't Loyal:

Users simply don't need to stick around to get your content, as they probably can easily find it on another app or site. Recent studies don't lie. Most apps lose 77% of users within the first three days of launch (Applause), while the average returning visitor rate for sites is less than 40% (MarketingSherpa). With new users becoming increasingly fickle, the importance of keeping your loyal users is dramatically increased.

Loyal Users Spend More:

Retaining your app or site users has direct financial benefits, as loyal users tend to make more in-app and in-site purchases. For example, a recent study by Swrve showed that only 0.15 percent of mobile gamers account for 50 percent of all in-game revenue. Thus, retaining and nurturing your users is key to successful app or site revenue generation.

How Can You Improve Your Retention Rate?

From providing stellar customer service, to creating a thriving community around your site or app, there are many ways to improve your retention rate. However, one of the easiest ways to improve the retention rate on your app or site is to choose a smarter monetization solution.
Our rewarded ad solutions (Offer Wall and Rewarded Video) are proven retention builders, as these solutions are packed with features to keep users coming back to your app or site daily, including the ability to:

Reward Users with More Access to Your App or Site:

There is a reason why users downloaded your app or registered on your site--they're interested! In exchange for engaging in an offer, our rewarded ad solutions allow users to experience more of your app or site, without requiring them to spend money! Therefore, our solutions allow you to reward your users with more access to your premium features, such as your virtual currency, character upgrades, site upgrades and other virtual rewards. As users get a taste of what your app or site can provide, they will visit your app or site more often to enjoy the perks of deeper involvement.

Eliminate Price as a Purchasing Factor and Monetize Your Non-Paying Users:

While users want premium content, the bottom line is that most users don't make banner ad purchases and only a small percentage of users make in-app purchases. By offering premium content to your users without requiring payment, our rewarded ad solutions increase the worth of your app or site. Thus with a perceived higher value, users will be more likely to spend time in your app or site vs. an app or site that requires payment for premium features.

Let Users Choose How They Earn Rewards:

Our rewarded ad solutions not only reward your users for interacting with ads, these solutions allow you to give users multiple options to earn rewards. From installing an app, to watching a short video, to completing a quick survey, our rewarded ad solutions give your users the chance to interact with offers in whichever format they feel most comfortable with. By providing users with multiple options to earn your premium features, you will notice your users are more engaged and are spending more time in your app or site.

Ready to Try Our Rewarded Ad Solutions?

Integrate Our Offer Wall into Your App or Site
Integrate Rewarded Video into Your App

Got Questions About Retention Rate?

If you have any questions about how retention rate works, how to improve your retention rate, or have questions about how rewarded ad solutions improve retention, please reach out to your account manager.