Customer Win-Back Strategies: How to Lower Churn Rate & Improve App User Retention?

On average, a mobile app will lose 77% of its daily active users (DAU) within the first 3 days after installation. That number continues to increase over time: up to 90% within the first month and over 95% after three months.

As an app marketer, one of the biggest challenges you may face is losing customers. Whether it's due to dissatisfaction, competition, or simply a lack of engagement, losing customers can be detrimental to your business.

But fear not, because there are customer win-back strategies you can employ to redeem relationships and bring customers back to your app.

What is a app customer win-back strategy?

A win-back strategy is exactly what it sounds like: a calculated marketing plan to re-engage DAUs who have left your app, keep them as active users, and help keep your churn rate low.

Churn rate, or the percentage of users who stop using an app during a given time period, is detrimental to your platform's success. To be a successful app, the number of new users must outnumber the number of users who leave.

Churn not only stifles your app's growth, but it's also costly.

While developing the right win-back strategy for your specific audience can be difficult, it is well worth the effort. Considering that acquiring a new customer can be up to 25 times more expensive than retaining an existing customer, re-engaging a dormant user can help improve your bottom line.

It is still necessary to make efforts to acquire new users or customers in order to grow, but it is also necessary to continue adding value to the customers already in your database.

Win-back campaigns and strategies are an effective way to reactivate dormant users and increase your customer lifetime value.


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4 Tips to win-back users for your app

Once you've identified the reason(s) why a customer has stopped using your app or service, you can start devising a strategy to entice them back. Executing the proper strategy may not only re-engage your inactive user, but it may also be the reason they re-engage.

These four win-back strategies are tried-and-true methods for bringing disgruntled customers back on board.

1.  Conduct RFM Analysis

A marketing model known as RFM analysis has emerged to help businesses make decisions based on customer behavior, with a focus on recency, frequency, and monetary data. The model has proven effective in win-back strategies by examining segments of customer behavior to identify valuable customers and reduce churn rate.

By conducting RFM analysis, businesses can identify their power users, those with high potential for loyalty, and the customers most likely to respond to win-back campaigns. The model is instrumental in determining which customers need to be targeted in a win-back campaign, ultimately reducing churn rate and increasing customer loyalty.

Additionally, RFM can assist in the identification of loyal brand advocates and champions, who can be targeted in other campaigns like reward programs and promotions.

With the help of RFM analysis, businesses can better understand customer behavior and tailor their marketing strategies to improve customer retention and revenue.

2.  Push notifications for promotions

Push notifications and email are two effective ways to reach customers who are either dormant or disengaged within the app.

Tailoring messages to a specific segment with a special offer is a great way to remind them that you're still around. App developers can easily personalize push notifications with customer information such as location or previous transactions.

Consumers are more likely to buy if they believe they are getting a unique or special discount, especially if the offer is only valid for a limited time. Make it clear in your push notification or email how long the offer is valid.

3.  Request and act on feedback

Customer feedback is critical for any business or organization to continue to grow and improve. Internal teams will discuss every feature and element of an app thousands of times during development. Receiving customer feedback can provide new insights into your product's overall user experience and what can be done to improve it.

In-app surveys receive an average response rate of 13%, making them an excellent tool for gathering real-time feedback from active users.

⚡ Mobile Marketing Strategy: How to Leverage In-App Messaging for User Retention?

Once you've gathered data, it's critical to demonstrate to users that their input is valuable. If you decide to implement any suggested changes, let your users know you're paying attention. You can include a thank you message in your new feature announcements, or go the extra mile and send a personalized email to show how much you appreciate the time they took to provide feedback.


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4.  Personalize communication

Every customer wants to know that their voice is being heard and that their opinion is valued. Given the high cost of acquiring new customers, retaining your existing customer base should be a top priority for any business.

Personalization tactics can be used in email marketing to show subscribers that you're paying attention. Include their name in the subject line and email body to demonstrate your interest in their unique experience. You can also use user data to provide tailored offers based on previous purchases.

⚡ App Personalization: The Key Point To Maximize Your App's Potential

There is also the option to personalize the customer service experience. Make a designated support representative available to answer questions and troubleshoot any problems.

Provide multiple channels of communication, such as phone, live chat, or email, to ensure that all customers can reach a service representative in the most convenient way for them.

Conclusion

Acquiring new customers is critical to your company's success and growth. Retaining your existing customer base is an equally important job.

Don't ignore dormant users – use user data and a personalized win-back strategy to re-engage them. ASO World has put together a high-level overview of the basics of user retention, along with tips and advice on how to win loyal users.