When notifications aren’t enough: Rethinking customer retention in app-centric markets

In today’s app-centric market, it is essential to employ effective strategies to keep users engaged and improve retention

GETTING USERS TO download an app is only half the challenge these days; companies still need to make a big effort to keep them coming back. Push notifications once offered some assistance in this quest, but they are quickly falling out of favour as businesses rethink customer retention strategies, especially for users in an app-centric market.

Here is a closer look at this challenge and some effective strategies for keeping users engaged in app-centric markets.

How the push notifications strategy rose and fell

Smartphones entered the mainstream less than two decades ago, and with them came the magic of push notifications. Those quick bursts of sound kept apps at the top of users’ minds and encouraged them to return for new messages and offers.

While gaming apps tempted users with bonus rewards and gaming streak challenges, retail apps teased shoppers with flash sales. For a while, this proved to be a successful strategy. However, the novelty of push notifications has died down recently, rendering the strategy unsuccessful.

What are the core reasons for this failure? The average smartphone user in the US today receives more than 46 push notifications per day, according to Businessofapps. The oversaturation of these notifications has made users wary of checking in with apps. Another issue is cognitive fatigue; when people get used to constant notification alerts, they begin to ignore newer notifications or even shut them out entirely.

In addition, modern users want instant value, prefer relevance over repetition, and have decreasing attention spans. Thankfully, there are a few fresh retention strategies that can help.  

Effective retention strategies

With the relevance of push notifications in app-centric markets waning, these approaches can prove helpful.

Deep personalization

There’s a reason many social media platforms moved from community-centric content to algorithm-based content. In the past, you had to follow a handle to see content from that profile, but today, content arrives in your feed according to your previous activities and is chosen to suit your personal interests. Push notifications can still work if they are programmed to intelligently notify you based on your interests.

For example, AI and behavioral analytics can be used by a music app to suggest a playlist based on your mood. Similarly, gaming platforms like Leo Vegas Canada use personalized recommendations to suggest games that match individual player preferences. Personalization is the key here, which is in line with the latest SEO trends.

Habit formation tactics

Habits make it easier for us to act without the rigor of thinking. When app developers use tactics like gamification features to initiate repeated actions, it becomes easier for users to come back.

One classic example is Duolingo’s streak feature that enables users to gain achievements when they check the app at least once a day. Similarly, fitness apps give milestone badges to encourage users’ consistency.

Value-rich updates

Push notifications have become quite cumbersome, and many users still yearn for updates that provide them with real value. With adequate research, an app development team can create and release new features that solve a problem or create an experience users care about.

Some good examples of updates users appreciate are expert tips and exclusive content. A photography app, for example, could release updates about how to create a photo effect that’s trending on social media.

Multi-channel engagement

If the only way users can get updates from an app is through push notifications, it could be destined for failure. The best option is to release updates in various places so it becomes easier for the user to obtain information from your platform. An app platform might want to combine push notifications with SMS alerts, in-app messaging, email newsletters, or even social media updates.

While these strategies are effective, it is a good idea to test and see what works. Testing must involve measuring key indicators. What data should inform strategies? Developers should pay attention to churn rate to see how quickly users leave, daily or monthly active users, and retention cohorts to identify when and where users tend to drop off.

Push notifications can still provide support

Push notifications are not totally ineffective, but they are no longer as attention-grabbing as they once were. There are now so many apps and updates vying for users’ attention. However, with strategies such as multi-channel engagement, value-laden updates, habit formation tactics, and deep personalization, apps can keep users’ attention and improve their retention statistics.