Friday, 10 June 2016

The Math of the App Business - Increasing App User Retention

Let's continue from our previous post last point remember? 

Let me remind it was 'The Math of the App Business', and next point I mean second out of seven metrics we were discussing is Monthly active users (MAU) Let's discuss that further . . .

2 – Monthly Active Users (MAU)

What MAU actually is it is the number of users having actively engaged with your app during the last month. Monthly active user is the coarse metric that highlights the main user base of the app. You can also track DAU – daily active users, to see more closely how truly indispensable the app is for those who have installed it. 

DAU – Daily Active Users:
DAU can be calculated for a specific day or as average over any time frame. Not diving into intricacies around the term “active users” lets depict it is commonly considered any app user who has launched your app at least once can be counted as an active user. For instance, if the app has been used 40,000 times by 10,000 people in the last 30 days, the MAU is 10,000. 

 3 – App User Retention or Customer retention

Retention rate equals to the total number of users within a set period of time divided upon the total number of users who engaged with the app in a previous period of time. 

So, when 500 new people from May used your app in June / 1,000 new people in May, your retention rate is 50%. AUR is the measurement of app’s ability to engage and maintain its customers over a period of time, commonly 1 month. 

Customer retention may differ by category, where as common statistics show an average 40% 1-month retention rate and a 4% 1-year retention rate. 

Average customer retention rates The retention metric is based on the frequency of app sessions – which is the act of a user opening the app. 

Contrary to the retention rates, there is also the “churn rate”, meaning the percentage of users who do not return to the app. Together with “user lifetime” metric (the average number of days a user spends interacting with the app), this set of app metrics is vital to understand what is actually happening in the app.

We will discuss rest of the points in our next post in details, so stay in touch for updates. For more Tips and Tricks Follow us on Twitter, 
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