In today's dynamic and highly competitive mobile app landscape, one of the most significant challenges faced by app publishers is user retention. App retention rates have always been a critical metric, but they've become even more vital as the mobile app market continues to expand. As the market becomes noisier, CAC is rising; according to Business of Apps, the average CAC rose by 60% from 2017-2022.
Statista and Data.ai found that between 2016 and 2022, the number of apps downloaded yearly increased by 82%. That number reached a staggering 255 billion in 2022. However, despite the immense potential for app revenue generation, retaining users remains a formidable obstacle for app publishers.
Below, we'll explore how Zendrive's IQL solution is transforming the way app publishers approach user retention. We'll delve into the struggles that apps face in retaining users, examine how Zendrive's IQL solution works, and highlight the key benefits it offers in terms of improving app retention.
The app retention challenge
App publishers today grapple with the daunting task of retaining users in a fiercely competitive environment. According to Business of Apps, app retention rates have been a subject of concern, with only a fraction of users sticking with an app beyond the initial download.
As of late 2022, according to AppsFlyer, the average Day 30 retention rate (per app with a minimum of 50k global installs) for iOS devices was 4.3%, while it was 2.6% for Android devices. Broken down by industry, however, that Day 30 retention rate ranges (per app with a minimum of 50k global installs). Here’s a quick look at how they vary:
- News: 11.3%
- Business: 5.1%
- Shopping: 5%
- Finance: 4.6%
- Lifestyle: 3.6%
- Entertainment: 3%
- Travel: 3%
- Gaming: 2.4%
These statistics underscore the difficulty of keeping users engaged and invested in mobile applications. Several factors contribute to these retention challenges:
1. Poor user experience: Slow load times, confusing navigation, and a lack of intuitive design can frustrate users, prompting them to abandon an app.
2. Onboarding difficulties: Apps that don't provide a smooth and user-friendly onboarding process can deter new users from continuing their journey.
3. Lack of clear value: Users are more likely to abandon an app if they don't perceive a clear value or benefit from using it.
4. Lack of user engagement: Failure to engage users through personalized and relevant experiences, particularly in an overly saturated app market with heavy competition for user attention and high user expectations, can lead to rapid attrition.
These challenges make it imperative for app publishers to find innovative ways to enhance user retention and offer compelling reasons for users to remain active within their apps. For example, by leveraging driving behavior insights, IQL enables publishers to craft personalized messages that resonate deeply with users. This tailored approach fosters heightened user engagement, addressing the persistent hurdle of retention by offering customized, value-driven experiences.
IQL: Transforming app retention
Zendrive's IQL solution is a groundbreaking approach to addressing app retention challenges. It offers a unique and effective way to engage users, improve their experience, and boost overall retention rates. Here's how Zendrive's IQL solution works for app publishers:
- The Driver Score savings value: At the heart of Zendrive's IQL lies a distinctive savings proposition based on the Driver Score, which delivers personalized value. As users sign up for a 30-day test drive experience, their driving data becomes a catalyst for delivering unparalleled, individualized messaging. This type of engagement consistently surprises and delights users, inviting them back into the app for learning opportunities and rewarding experiences.
- Driving behavior tracking: Zendrive analyzes user driving behavior during the test drive, focusing on key aspects like speeding, distractions, hard stops, and more. This data helps personalize the user experience and offers insights to enhance their driving habits.
- Exclusive personalized driver savings: After 30-45 days of participating in the test drive program, users unlock a unique, personalized auto insurance discount based on their Driver Score. This exclusive offer, tailored to their driving behavior, breaks free from traditional insurance rating factors. It's the key to significant savings and as well as a gateway to unlocking additional benefits for prolonged engagement.
Key benefits of Zendrive’s IQL solution
Zendrive's IQL solution offers several key benefits that significantly enhance app retention rates. Let's explore these advantages and compare them with industry-standard app retention rates:
1. Improved user engagement and experience
IQL transforms the user experience by offering a unique test drive experience within the app. Along their journey, users get real-time feedback and updates on how they’re driving and how they could potentially increase their chances of getting a discount by driving safer. For example, they’ll get insights into how many hard stops they made, how many times they picked up their phone, and more. This engagement encourages users to remain active within the app, fostering loyalty and trust.
2. Enhanced personalization
By basing auto insurance quotes on actual driving behavior rather than only traditional insurance risk factors like gender and age, Zendrive's IQL solution provides users with personalized offers that align with their unique habits. This personalization not only improves retention but also enhances user satisfaction.
“We are excited about the [IQL] program as it is replacing the traditional insurance quoting experience with something smarter and fairer. It is a paradigm shift in insurance pricing and is making auto insurance affordable for a lot of people.”
– Ed McCabe, Advisor, SteadyDrive
3. High retention rates
Comparing IQL retention rates with industry standards reveals a compelling story. While many apps struggle to retain users beyond the initial download, Zendrive's app publishers, on average, achieve a Day 30 retention rate that outperforms industry averages.
Business of Apps notes that the average worldwide Day 30 retention rate across mobile app categories is 5.7%. As noted earlier, broken down by category, that rate ranges, with shopping apps at a 5% retention rate, Finance apps at 4.6%, and Entertainment apps at 3% by Day 30.
With IQL, Zendrive app publishers that target new users with the test drive experience see 40-60% of the users stick around to get personalized discounts at the 35-45 day mark. This high retention rate can be attributed to the engaging, unique experience offered through the IQL solution, and can have a significant overall impact on app retention rates, CAC, and LTV.
4. Automated engagement and insights
Zendrive’s SDK empowers app publishers with automated touchpoints, providing users with personalized driving insights, safety tips, and challenges through a driver dashboard. This engagement, rooted in their personalized driving data, fosters trust and loyalty while promoting safer driving habits. Additionally, SDK features offer robust safety measures like collision detection, family driver monitoring, and reward programs. Together, these features enhance user retention and contribute significantly to a safer driving experience.
“[With Zendrive], within around a month and a half, we were able to get [our IQL program] up and running. [That] allows small and nimble companies like ours to integrate hundreds of thousands of man-hours of development into an experience.”
– Dom Wong, CEO & Co-Founder, Pogo
Facing future retention issues with the right solution
With Zendrive’s IQL program, consumer apps across various categories experienced remarkable boosts in retention rates, with increases of up to 60% at 30 days and up to 40% at 60 days.
On average, these apps witnessed up to 3-6 more visits per month and have seen substantial revenue benefits, typically generating $5 - $10 per test drive. These outcomes demonstrate robust additional engagement and retention advantages.
Get in touch today to explore how Zendrive's IQL can elevate your app's engagement, retention, and incremental revenue.