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Customer retention vs customer acquisition: which is your mobile app strategy?

Mobile Application Blog

Defining app marketing strategies usually based on two factors that raise a major question, “Customer Retention or Customer Acquisition: which deserves more attention?”

If the same question is put across to you, will you be able to answer the same? This is exactly the dilemma confronted by the mobile application development companies when chalking out their mobile app marketing strategy. Few might argue for Customer Acquisition whereas there are others who might prefer the other concept.

The debate is ongoing and quite confusing no doubt but if the plan is to hire the dedicated mobile app developer, then the application in concern can gain from their experienced knowledge.

Before coming down to a decision to hire a deserving partner, it is important to fully understand the two terms, which are commonly heard of now and then.

Customer Acquisition is practical to gain new and targeted customers for the service put up for sale and in this case, it is the mobile application. 

One can argue that this point is the most crucial part and must be given priority. This is agreeable considering the fact that if the application fails in its endeavor to reach out to the target customer group then the entire app building journey ends up with a total loss.

Therefore, factors have already been framed to aid a client in reaching the application to the maximum user base.

ASO or App store optimized content enriched applications features each time relevant keywords are used to search the app store for the applications. Besides ASO, the mobile developer needs to concentrate on other parameters such as:

  • Penning down engaging content
  • Design a good landing page and user-friendly UI and UX designs
  • Proper screen designs and video to display 
  • Join Communities and Encourage User Feedback etc.

For further reference, Read “The basic tips of ASO to enlist th… top of the chart”. 

On the other hand, Customer Retention is to hold back the existing customers already shipped in for the application initially by altering the strategies to match the requirements of the users onboard. Few basic tricks here even work on retaining customers for prolonged time-period such as:

  • User-engagement through content and features
  • Personalized service on the basis of existing customers’ search records
  • Personalized push notifications to regain back user’s attention
  • Remarketing through push notifications, social media postings, free and paid ads.

For further reference, Read “The 6 essentials to mobile app marketing metrics”.

The above definitions gave an ambiguous insight into the two most commonly heard terms. And when one argues that Customer Acquisition is important at the initial stages, the marketing strategy must be flexible enough to stress more on Customer Retention in the latter part. 

But, how can anyone say Customer Retention is Better?

To answer this question, the benefits of the term must be closely examined:

It is cost-effective compared to the other term since the efforts are concentrated entirely on existing user-engagement more.

Application developer/developers have sufficient data on the existing customers and can easily design marketing strategies accordingly without wasting time and money for extra research.

Establish a long-term relationship and brand loyalty amongst the existing ones with notifications to keep pulling them back on the same app and serve as an indirect marketing tool to fetch new users through accurate recommendations.

Even the few statistical pieces of evidence mentioned here highlight the importance of Customer Retention:

  • 41% of online revenue generated by existing customers from remarketing. 
  • Customer Acquisition usually costs 7 times more than Customer Retention.
  • 5% increase in Customer Retention can increase profits by 25% to 125%.
  • The probability to sell marketing tricks to existing customers is 60%-70% as against the new ones, the figure stands at 5%-20%.
  • 31% of new customer acquisition is triggered through contact recommendations.

The ‘word-of-mouth' strategy and ‘Recommendations' are the biggest drivers in mobile app installations and Customer Acquisitions, not mentioning the revenue generation part here. We cannot undermine the importance of Customer Acquisition at all but the Customer Retention is the most important part of the app marketing strategy.

Therefore, the key takeaways from this blog, 

Highlights the fact that both the strategies mentioned here are important but minutely differ in their relevancy and weight. Hence, the top-rated mobile application development companies prefer adopting a strategy, which is a perfect amalgamation of both customer retention and acquisition. 

If you have any suggestions, feel free to share your opinion.

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Fluper - Android & iOS App Development Fluper
Category: Mobile App DevelopersCompany about: Fluper Ltd. is an authentic, certified and top rated mobile application design and development company with engineers expertising in native application development, customized applications provisioning end-end 360degree mobile app solutions. We have specilized in Android, iOS, iPad, Tablets and Wearable App Development Services. We have been working in the IT Mobile App Domain and Verticals since 2013 providing following services: #Enterprise Applications: Business, Banking, Finance, Human Reso ...
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