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Plight of Startups Fixed between User Retention and Customer Acquisition


Startups are usually faced with many hardships and tough time. One fix that most startups face is choosing between user retention and customer acquisition.
Startups are usually faced with a series of challenges coming up one after the other. Those who learn to deal with them by facing each problem boldly manage to find the path to success. However, there are some weak people who give up in between the race by fearing the challenges and not being able to cope up with it.
App development startup firms also travel through the same arc of journey. Why do some entrepreneurs clear the test of struggle while others fail badly? The only answer to this question is some entrepreneurs fail to realize how to manage various business elements and how much importance to give them based on its expected ROI.
Dilemma of Mobile App Development Startups
Mobile app development startups are often left confused when asked ‘whom would you give higher priority: customer acquisition or user retention?’ This question is difficult to answer without understanding the metrics involved in each of these elements.
What is the Status of your Mobile App?
By status, here, what we mean is whether your mobile app is deployed to the App Store recently or it’s been quite a few months since your app was launched. Why knowing this aspect is important?
Let’s suppose your mobile app is just launched in major Stores and made available to users for the first time.  In this scenario, you would obviously not have a loyal customer base. At such times, it is wise to focus all your efforts in earning new users.
Suppose you fall into the latter category where your app is few months old, you need to strike a balance between user retention and customer acquisition. Here, user retention becomes vital as the efforts behind earning customers so far should go in vain. Further, getting more users to your app is also vital for it to grow.
Read This: Why Startups Should Invest in Mobile Application Development?
How to Improve Retention Rate?
To find the answer to this question, you need to first dig into the reasons why people leave your app. These reasons can be directly mapped to suggestions for app improvement, which would further increase user retention rate.
Some basic pointers that would add value to your existing app, thereby increasing user’s interest in it are as mentioned below:
  • Add new features that increase utility of your app
  • Indulge with users by campaigning on festivals or special occasions to increase user engagement
  • Update users by push notification about the topics of their interest (do not overdo it as users get irritated by frequent and irrelevant push notifications)
  • Track user behavior in your app to offer more personalized updates

On a Concluding Note
How much importance to give to user retention and customer acquisition solely depends on the popularity quotient of your mobile app. One important thing to note here is that both the elements are important, none of them can be sidelined or ignore. Learn to balance user retention and customer acquisition to reap maximum benefits from your mobile app.

Ethan Samuel

I am Web Analyst I love to analyse the web for the betterment of businesses and providing information to my blog reader. I love to write about trending technologies, specially mobile technologies.

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