Loyal app users represent a bond between the user and the business, built on trust, satisfaction, and mutual benefit. This bond can drive growth, innovation, and long-term success for businesses.
💶 Steady Revenue Stream
Loyal users are more likely to make repeat purchases or use the in-app services frequently. This results in a more predictable and steady revenue stream, reducing the uncertainty associated with acquiring new users.
💰 Cost Efficiency
Acquiring a new user is often more costly than retaining an existing one. Loyal users reduce the pressure to constantly invest in new user acquisition, allowing businesses to allocate resources more efficiently.
💬 Free Marketing & Word-of-Mouth
Loyal users tend to talk about their favourite apps. They share their experiences, recommend the app to their friends and family, and may even leave positive reviews on app stores. This word-of-mouth marketing is organic, genuine, and can be more effective than paid marketing.
⌛ Higher Lifetime Value (LTV)
Loyal users tend to have a higher LTV. This metric represents the net profit a business makes from a particular customer throughout the duration of their relationship. A higher LTV is always desirable because it means a user continues to bring value to the business over time.
🤝 Better Feedback Loop
Loyal users are often more invested in the product, so they're more likely to provide feedback, report bugs, and suggest new features. This can be invaluable for the product development cycle, as businesses can make improvements based on this direct user input.
🦸♂️ Brand Ambassadors
Beyond just word-of-mouth marketing, loyal users can become brand ambassadors. They might create content around your app, showcase it on their personal platforms, or even wear branded merchandise. Their loyalty can thus translate into visibility and credibility for your brand.
🚪 Reduced Churn Rate
Churn rate is a measure of the number of users who stop using an app during a given period. A high churn rate can indicate dissatisfaction and can be costly for businesses. Loyal users, by definition, are less likely to churn, ensuring a more stable user base.
🔮 Predictable User Behaviour
Over time, businesses can gather data on loyal users and understand their behaviour patterns. This predictability can help in refining marketing strategies, improving app features, and tailoring personalised offers.
🏌️♂️ Competitive Advantage
In highly competitive markets, having a strong base of loyal users can be a significant competitive advantage. It can deter new entrants or help the business withstand competitive pressures from rivals.
🤗 Trust and Relationship Building
Having loyal users signifies that a trust-based relationship has been established. This trust can be leveraged for launching new features, products, or even entirely new apps.
This is paramount because perceived unreliability significantly dampens users' willingness to establish a robust relationship with an app. This reluctance can manifest diversely; users might use the app, but may hesitate to engage deeply with its services, or may display a propensity to explore and switch to more reliable alternatives. In almost all instances, an unreliable app simply hurts your reputation.
Reliability is undeniably crucial, yet Mobile App Trends reveals it's a parameter where not all apps measure up successfully. On a category level, especially social media apps show a potential to improve, being the app category with the lowest deemed reliability on average. However, the study also reveals that retail, utility, mobility, and transport apps also rank below average and therefore have potential to improve.
