5 ways to improve User Retention in 2024

Anurag Shastri
Flipkart Design
Published in
4 min readMar 16, 2024

With over 5 billion internet users globally, digital adoption has soared, but so has competition for user acquisition and retention. And here’s the thing, acquisition is not the whole answer. Yes acquisition is important.

According to an analysis of over 500 million mobile devices by Amplitude, on average, 80% of new app users abandon it within three days, emphasizing the importance of early and consistent value delivery.

If your product does not bring value to users early & often, it reduces the possibility of turning them into habitual users. But acquiring new customers will not matter if you are losing users. Long-term growth of a product & the health of a business typically depends on how well you retain users. Look at the oldest businesses & restaurants out there. Their retention metric would leave you staggered.

Along with that, the competition for user attention is so fierce that we have come to a stage where neither of us, if asked, can remember all the ads we’ve seen in an hour of doom scrolling on Instagram. So now more than ever, it is essential to also improve the service your product offers rather than the product itself, and then market that. Here is what I believe can help retain the value of your product in the customer’s minds:

Dribbble shot by Gleb Kuznetsov

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In the data-driven era, personalization is key for retaining users. Humans long for a personal touch. Customizing experiences based on individual preferences, behaviors, and demographics enhances satisfaction and fosters belonging. And now, with AI, algorithms can analyze user data to dynamically adjust content and recommendations, ensuring engagement. For instance, surprising customers with personalized offers tailored to their purchase history and engagement metrics boosts retention. This could include exclusive discounts, early access to sales, or even freebies related to their past purchases.

But you also need to upgrade your service. When there is a chance for an in-person interaction, make sure that the interaction leaves the customer with a smile on their face. And if there is no ready-made opportunity for it, try to make it happen. Even if you are a completely digital company that doesn’t have any physical assets to provide to the customer. A small token goes a long way.

First impressions matter

And your first interaction with the customer certainly does. Creating a seamless onboarding process is vital for retaining users. Minimize the friction by simplifying their registration, guiding them through their purpose on your platform and making it easier for them to remember your ease for another moment. Provide interactive tutorials & gradually introduce advanced functionalities to prevent overwhelming new users. I know it’s a lot of pressure. But it is simple enough to deal with if you just Keep It Simple, Silly.

Don’t make them feel alone

Foster a sense of community within your platform by integrating social features. Allow users to connect, share experiences, and provide user-generated content. Features such as forums, comments, and social sharing can enhance user engagement, making users feel part of a larger community and encouraging them to return. Take the example of Instagram — any time you see someone familiar to have liked a post you see, you’re more likely to explore that content. Simple & effective. Because as humans, we’re inherently intrigued by the actions of other humans.

Multi-Platform Accessibility

Think of how easy it is to watch Netflix/Apple TV/Prime Video on your phone while on the commute & resuming it exactly where you left off on another device. With users accessing digital platforms from various devices, ensuring a consistent and seamless experience across multiple platforms is imperative. Imagine how unvexed a customer would feel if they expected similar and/or continued experiences of your product across platforms and got them.

Monitor those long-term users

Use in-app surveys to monitor customer satisfaction. Introduce new features since innovation should be an ongoing theme in your product. The more innovative & easy your product is to use for a customer, the more value it provides and the longer they will use your product. And harness loyal customers using growth loops which will help create a cycle where you foster loyal customers.

Ted Lasso by Apple TV+

An extra nugget

And in an era where data privacy seems obsolete, if you can prioritise data privacy, it will go a long way in ensuring trust in the platform. Do you remember how Apple formally advertises the advanced security measures that it incorporates for all its users? It builds trust. Communicate your data usage policies. But also make it easier for them to read through it & implement robust security measures. Provide users with control over their personal information. A platform that respects user privacy is more likely to retain users over the long term — just look at Apple.

Remember, user retention is an ongoing process that requires continuous effort and adaptation. Metrics to be tracked here are lagging and they require patience and time to mature. Regularly reassess and refine your strategies based on data, user feedback and evolving market trends. Even if it means redesigning your strategy.

References

  • “Digital Around the World,” Datareportal, https://datareportal.com/global-digital-overview.
  • “Lessons learned from 1-trillion events tracked” (Amplitude, 2016)
  • Memory Recognition and Recall in User Interfaces, Nielsen Norman Group
  • Privacy by Apple

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Anurag Shastri
Flipkart Design

Sr. Product Design @ Flipkart • HFI CUA™ • Visual Artist