Localytics: 2015 App User Retention Survey: China's user retention rate is only 18%

199IT original compilation

Localytics' annual app retention report looks at two metrics:

User retention rate: the percentage of users who return to the app 11 times or more;

User abandonment rate: The percentage of users who abandon the app after visiting it once.

The app user retention rate declined in 2015, from 39% in 2014 to 34%. On the other hand, the user abandonment rate increased significantly, from 20% in 2014 to 25%. The report conducted an in-depth analysis and found that there is a big difference between the United States and other countries in the world, especially China.

US user retention rate increased to 42%

US user retention improved, rising 3 percentage points to 42%, while user abandonment remained stable at 19%.

This is mainly due to continued improvements in app development and better strategies for attracting users to revisit, such as sending push notifications via email.

User retention in China is more challenging

The data shows that Chinese users behave very differently on the same apps. In short, the user retention rate in China is worse than that in the United States, with the user retention rate in China dropping from 27% to 18%, while the user abandonment rate is as high as 37%.

The main reasons for the sharp drop in retention rate are:

The country's improved economic conditions have driven smartphone usage and 4G network improvements. According to App Annie's report, in the first quarter of 2015, China's app downloads exceeded those of the United States for the first time;

The massive growth of free messaging apps has affected retention rates. Many brands choose to use WeChat instead of developing their own apps, and WeChat extends to business services, which has led to a rapid increase in demand for other apps.

Chinese users spend less time accessing the same app than Americans, at just 4.1 seconds. Users have very different expectations of app functionality, which leads to a higher abandonment rate.

In addition, in China, the abandonment rate of applications on old devices is higher because storage is a problem due to the small space:

Push notifications drive user retention rates up to 56%

The positive side is that apps that use push messaging have higher user retention rates in both China and the U.S. Push messaging provides real-time interaction to users, increasing the value of the app. Global companies have begun using push messaging to drive app retention.

Of North American users who receive push notifications, 50% return to the app regularly.

In China, apps that use push messaging also have higher retention rates. App abandonment rates also dropped to 20%, while retention rates increased to 35%.

Users who receive push messages are more loyal, which is positive news for app companies. Personalized push technology will help marketers improve the user retention rate of their apps.

In conclusion, the good news for marketers is that hard work, app optimization, and personalized marketing strategies have a positive impact on app retention rates.

Compiled from: Localytics Translator: Sun Ying