User Retention Tips- How to Increase User Retention for Mobile Apps

Is your app struggling to keep users engaged, and are you noticing a steady decline in the number of active users every day? User retention not only plays a pivotal role in determining the long-term success of any application but also helps build a loyal user base that drives sustainable growth. Unlike merely acquiring new users, retaining existing ones ensures sustained growth and creates a steady foundation for scaling your app to new heights. 

With that said, retaining users is not as easy as it sounds as it requires strategic planning and careful consideration of the user’s needs, behaviors, and expectations. In fact, according to a recent study, a user retention rate of at least 32% is considered essential for apps looking to scale and sustain profitability. Whether you are a business owner or an app founder, understanding user retention and improving it is something that is non-negotiable if you want your app to stay competitive in 2025.

Let’s get into the nitty gritty and explore more about user retention, how to measure and improve it to turn your users into loyal supporters. 

What is User Retention?

User retention refers to the ability of an app, product, or service to keep its users engaged over a specific period of time. It is a very powerful metric that tracks how many users return to the app after their first interaction and it is used to judge how well an app can capture and maintain user interest beyond the initial download or sign-up.

A relatively high user retention is a sign that users find your app to be valuable to them and are inclined towards using it. On the other hand, a low user retention rate indicates that your application is failing to satisfy the users, leading them to abandon the app shortly after using it.

The user retention rate is often tracked through specific time intervals like Day 1, Day 7 and Day 30 after the user has installed the app. By keeping track of user retention metrics, businesses can understand whether their users are coming back consistently and identify opportunities for improvement to increase the engagement and overall success of their app. 

Key Touchpoints in the User Journey That Affect Customer Retention Rate

From first coming in contact with an app to becoming a habitual visitor, a user’s entire journey can be mapped out in different phases. As users move through this funnel, it is typical for their numbers to decrease, and those who reach the final phase are your retained users, who are more likely to remain loyal to your app over time. 

At each stage of the user retention journey, users will be encouraged to take significant actions where their decisions will determine whether they advance to the next phase. Let’s look more in detail into these areas and how it is extremely important to provide your users with a pleasant experience in order to fully retain them: 

1. User Onboarding: 

The onboarding process is the first critical interaction a user has with your app and it sets the tone for their entire experience. The first impression that you make with a seamless, well-designed, and quick onboarding process will help reduce any early friction and ensure that users feel comfortable continuing to use the app. 

In fact, a recent study reveals that apps with a good onboarding experience will have a 50% higher retention rate. You can also strategically use your onboarding process as an opportunity to inform your users about the best features and showcase the potential and value of your app to motivate them towards using it frequently. 

2. User Activation

Activation refers to the moment when users experience the core value of your product for the first time and they understand exactly how your app or service solves their problem or meets their needs. During this stage, it is crucial to provide your users with an immediate and impactful experience like completing their first task, discovering a unique feature, or reaching a milestone to give them a feeling of achieving their first “win”. By doing this, you reinforce the value of the product and make it more likely that they will return and continue engaging, ultimately leading them to the final phase of becoming habitual users.

3. Habit Forming

Once your users are activated, the next step is to encourage habit formation. This stage involves making your application a regular part of users’ lives. The more users interact with your app, the stronger the habit becomes, ultimately increasing retention. By leveraging psychological triggers and creating a consistent user experience, you can help users integrate the app into their daily routines, turning them into long-time loyal customers.

How To Calculate User Retention?

To calculate the user retention rate for you app, follow the steps below: 

Step 1: Set the time frame

Choose a specific period, such as a week, month, or quarter, to assess retention.

Step 2: Identify initial users

Determine the number of users who first interacted with your product or service during the chosen time frame.

Step 3: Track returning users

Measure how many users continue to engage with your product or service after the initial interaction within subsequent time periods.

Step 4: Calculate retention rate

Divide the number of returning users by the number of initial users, then multiply by 100 to find the retention rate percentage.

Here is the formula that you need to follow to calculate the retention rate: 

(Number of Returning Users / Number of Starting Users) x 100

For example, if you are measuring retention for an e-commerce website over a 14-day period:

Set the time frame: 14 days (from April 1st to April 14th).

Identify initial users: On April 1st, 5,000 customers visited your website for the first time.

Track returning users: By April 7th, 1,200 of those customers made another visit.

Calculate retention rate: (1,200 returning users / 5,000 starting users) x 100 = 24% retention rate.

What are the Best Strategies for Improving User Retention?

1. Ensure a Swift Onboarding Process

2. Deliver Steadfast Support Whenever Needed

3. Implement Proactive Monitoring 

4. Continuously Refine Through User Feedback

5. Keep Your Users in the Loop with Progress Reports

6. Target Active Users with Personalized Upsell Offers

7. Engage Your Users on a Personal Level

8. Meet Users Where They Are

9. Give Gentle Prompts to Re-engage Users

10. Incentivise Loyalty

11. Leverage Data-Driven Insights 

12. Build Habit-Forming Product Experiences

13. Optimize Key Retention Metrics 

14. Build an Easy-to-Navigate UI

15. Don’t Let Technical and UX Problems Hold You Back

15 Best Practices for Improving Customer Retention

Did you know that the average user retention rate falls down to 7% by Day 30 due to various reasons like a lack of engagement, insufficient value delivery, or a frustrating app functionality? With such a sharp fall in retention, it is vital for app owners to address this issue head-on and implement effective strategies to encourage long-term user retention. From leveraging data-driven insights to delivering steadfast customer support, here are the 15 best practices for improving customer retention:

1. Ensure a Swift Onboarding Process

A swift onboarding process serves as a cornerstone in determining whether a user finds your app interesting and if they will continue using it. It ensures that new users quickly understand the value of your product and, at the same time eliminates confusion, setting the stage for an enjoyable user experience. 

However, a complex onboarding process with too many unnecessary steps can frustrate users, leading them to abandon your app even before fully exploring its features. In order to design an effective onboarding experience, you can focus on delivering value upfront while making the process as effortless as possible by: 

• Providing users with interactive in-app demos that showcase your app’s key features.
• Adding tooltips to guide users through the functionality of your app. 
• Walking users through the essential steps of your app with interactive onboarding flows.
• Allowing users to tailor their experience during the onboarding process.

2. Deliver Steadfast Support Whenever Needed

Every minute that you delay in responding to your users’ queries is crucial and can result in gradually losing their interest in your application. Users expect quick, reliable support when they encounter issues, and failure to do so will leave them to become frustrated and abandon your app with a negative impression of their experience. 

Whether through live chat, email support, or FAQs, having readily available support can make all the difference in ensuring that users are given steadfast support whenever needed. In addition to that, making sure that your support team is well-trained and equipped to resolve issues swiftly can go a long way in improving retention.

3. Implement Proactive Monitoring 

One of, it not the most, effective ways to retain users is by preventing churn before it happens. In order to do that, you need to engage with your users before they experience frustration or disappointment with your app. By monitoring user activity and proactively intervening and addressing their issues with personalized help, you can easily retain users who are on the verge of abandoning your app. Some of the ways to proactively monitor and address users are by: 

• Detecting early signs of churn: Monitor user behaviors that suggest disengagement, such as decreased login frequency or failure to complete key actions, and intervene before users decide to leave.
• Deliver tailored outreach: Take the help of emails or in-app notifications to reach out when users exhibit signs of difficulty or waning interest.
• Equip users with self-service options: Develop comprehensive resources like FAQs, instructional videos, and knowledge bases to help users resolve common issues independently.

4. Continuously Refine Through User Feedback

Incorporating user feedback for continuous improvement has always been an evergreen strategy for satisfying and retaining users in any domain. Look into your app reviews and other common platforms like social media where your users are likely to leave their opinions about your app and analyze their feedback. 

This will allow you to understand user pain points and areas for improvement. By implementing changes based on user input, you not only demonstrate that you are listening to their needs but also will be able to strengthen their loyalty to your product. In addition to this, you can also integrate feedback prompts throughout the user journey to ensure that you are always in tune with what your customers want.

5. Keep Your Users in the Loop with Progress Reports

Without a doubt, it is true that each app will provide its users a specific value, and reminding your users what they have achieved by using your app at regular intervals will serve as a positive reinforcement to retain them.

Whether it is tracking their achievements, usage stats, or milestones, these reports can keep users in the loop and show them that they are progressing and reaching their goals. For example, if you own a budgeting app, you can show your users how much money they saved or how effectively they have stayed within their budget through using your app. 

6. Target Active Users with Personalized Upsell Offers

Your active users are the backbone of your application and it is essential to preserve them. To identify these power users, you can look into the users who use the most features, make the most number of referrals, and those who are most active in support forums. 

For these users, you can further increase their lifetime value by providing upselling opportunities, like allowing users to explore product add-ons for free during a limited trial period. If your app has a subscription model, which, according to Statista, is one of the best ways to retain users, you can also reward them with discounts when they achieve significant milestones, such as their first anniversary with your platform or generating the highest number of product referrals.

7. Engage Your Users on a Personal Level

In recent times, personalization has become a highly effective and powerful tool to engage and retain users. Your app personalization can go from as simple as addressing your user with their profile name to using backend data to analyze their behaviour and create tailored recommendations. App personalization can significantly uplift user engagement to a higher level, making them more likely to return and continue using your app.

Also Read: 10 App Personalization Tips to Increase Customer Engagement in 2025

8. Meet Users Where They Are

To truly engage your users, it is crucial to meet them where they spend most of their time. Identify their preferred platforms or communication channels and interact with them in those spaces. Promote new updates within your application on the platforms your users frequently use. Additionally, consider integrating these platforms into your app so users can seamlessly access their favorite tools or services without leaving your interface. 

9. Give Gentle Prompts to Re-engage Users

Sometimes, users need a little nudge to make them return to your app. Through gentle reminders, notifications, or personalized messages, you can prompt users to engage without being intrusive and foster high app user retention. Showing users what they have missed and highlighting the new updates within your app will not only lure users toward continued usage but also increase their lifetime value.

Also Read: How to Increase Mobile App Engagement (20 Proven Strategies)

10. Incentivise Loyalty

A proven method for encouraging users to keep coming back to your app is by recognizing their loyalty through offering rewards or incentives for their continued use. Including loyalty programs like points-based systems or tiered rewards, discounts, and exclusive content for your highly active users can motivate them to stay engaged with your app. You can also use this as a way of showing users that their loyalty is appreciated while encouraging repeat usage. 

11. Leverage Data-Driven Insights 

Data is an extremely powerful resource that helps you understand your users and make informed decisions about retaining them. By analyzing user behavior, you can identify patterns that indicate when users are likely to churn or become disengaged.

With this valuable information, you can come up with strategic ways to personalize the experience, target specific users with re-engagement efforts, or improve aspects of your app that may be causing friction. Instead of blindly making moves and trying out different techniques, leveraging data ensures that your retention strategies are based on real insights, making them more effective.

12. Build Habit-Forming Product Experiences

By weaving your app into the usual routine of your users’ lives, they become habitual users who foster long-time retention. But this is not easy, and your app needs to deliver consistent value so that your users become extremely dependent on it. Apart from satisfying user intent, your app should also satisfy your users emotionally by providing a sense of accomplishment or value with every interaction to create positive reinforcement and long-term retention.

13. Optimize Key Retention Metrics 

In order to effectively retain users, you need to find out which is the critical component of your app that is attracting them and which lacks the interest of users. Through analytics like cohort analysis, churn rate, and feature usage tracking, you can get insights into the segments with higher retention rates and understand the behavioral patterns of your users. With this information on what’s working and what’s not, you can optimize your application accordingly. 

14. Build an Easy-to-Navigate UI

Let’s face it, even if your app has the best features, if it is difficult to navigate and find them, your users will probably neglect those features, leaving them undiscovered. When users find your app easy to navigate and visually appealing, they are more likely to continue using it.

A well-designed UI is not just about aesthetics but it is more about making sure users can satisfy their intent efficiently. With a simple and clean design, you can help users quickly access the key features of your, reduce friction and improve their overall experience. 

Also Read: Ultimate Guide to Mobile App Design: 20 Best UI Principles & Practices

15. Don’t Let Technical and UX Problems Hold You Back

From slow load times to app crashes and bugs, technical and UX problems are the worst enemies that keep users away from your app. While it is common for these issues to arise, it is important that you stay vigilant and address any issues promptly to avoid disrupting the user experience. Regularly testing and fixing these problems is crucial to maintaining a smooth, seamless experience for your users and keeping them retained in the long run. 

Conclusion

Building your application is only half the battle; the real challenge lies in fostering strong user retention and cultivating a loyal user base. A high user retention is also a strong indication of how well your app meets the needs and expectations of your audience. By prioritizing retention and implementing strategic techniques to improve them, you are not only securing your current users but also laying the foundation for continuous organic growth. 

Looking to develop a mobile app that captivates and retains users? Look no further than APPWRK IT Solutions. As a premier app development and AI-driven digital transformation company, we excel in creating cutting-edge, next-generation applications powered by emerging technologies and deep industry expertise. Partner with us to build an innovative, user-focused app that stands out. Contact us today to start your app development journey!

Frequently Asked Questions (FAQs)

What is a good retention rate?

While a good retention rate differs according to the category of the app and its industry, a relatively good rate will be 10% to 30% after 90 days. Gaming and social media apps tend to have a higher retention rate when compared to other apps like budgeting, shopping, or travel related applications. 

What is the difference between user retention vs. customer retention?

Although user retention and customer retention seem to denote the same, they both signify entirely different concepts. User retention focuses specifically on the ability of an app or a digital product to keep users engaged over time and it is measured based on how often the users return to the app after their first interaction. However, customer retention is a broader concept that applies to any type of business and does not just refer to apps. It denotes a company’s overall ability to retain its customers over a long period. 

User retention vs. churn: what is the difference?

User retention and churn are like the two opposite sides of a coin where user retention measures the ability of an app or service to keep users engaged over time and churn, on the other hand, measures the percentage of users who stop using the app or service over a certain period. A high churn rate suggests that users are dissatisfied or disengaged with the application, leading to them abandoning the app. While retention focuses on keeping users around, churn focuses on identifying and addressing the factors that cause users to leave. 

What is the importance of user retention?

Retaining users is a cost-effective way of improving the engagement of your app while still generating good revenue, as retained users are more likely to make repeat purchases and recommend your app to others. A high customer retention rate can also help solidify your market position, and it is a strong indicator that your application is well-received. This not only gives you more credibility in the market but also attracts new users to choose your app amidst competitors. 

What are some important customer and user retention metrics and KPIs?

Here are some essential customer and user retention metrics and KPIs that help measure and improve retention efforts:

1. Retention Rate: The retention rate meaning refers to the number of users who continue to use your product or service over a specific period.

2. Churn Rate: Tracks the percentage of users who stop using your product or service during a given period.

3. Customer Lifetime Value (CLV): Estimates the total revenue a customer will generate throughout their relationship with your business.

4. Net Promoter Score (NPS): Measures customer satisfaction and loyalty by asking users how likely they are to recommend your product to others.

5. Daily, Weekly, and Monthly Active Users (DAU/WAU/MAU): Tracks the number of unique users engaging with your product within a specific time frame.

6. Customer Engagement Score (CES): Evaluates how actively users interact with your product or service.

7. Time-to-Value (TTV): Measures the time it takes for a user to experience the value of your product after signing up.

8. Repeat Purchase Rate (RPR): For e-commerce or subscription businesses, track how often customers make repeat purchases.

9. Feature Adoption Rate: Measures how many users are actively using specific features of your product.

10. Customer Support Metrics: These metrics include first response time, resolution time, and customer satisfaction (CSAT) scores to assess the quality of support provided, which directly impacts retention.