User Retention Benchmarks and Best

Practices
Table of Contents
+ Overview
+ Why Do Users Uninstall Mobile Apps?
+ Overall Uninstalls
+ Day of Week Uninstall Trends
+ Physical Attributes
- Mobile OS Platform
- Device Manufacturer
- City

+ Behavioral Attributes
- Re-installed Users
- Number of Sessions
- Number of Push Notifications
- Number of Transactions

+ Key Takeaways and Recommendations

+ Best Practices to retain E-Commerce
App Users
+ About MoEngage
Overview
Southeast Asia’s mobile commerce is on a roll. According to a combined
study conducted by Google and Temasek research, “3.8 million new
users will come online each month in Southeast Asia, making it the
fastest-growing internet region in the world between 2015 and 2020."

Southeast Asia (SEA) is also home to the most engaged mobile users in
the whole world. More than 90% of SEA’s population connects to the
internet through a mobile device. The daily time spent on the internet
is about 4 hours and 56 minutes per day. That establishes the fact
mobile is the key driver for Southeast Asia’s exploding e-commerce
growth.

It is no surprise that global giants like Amazon and eBay as well as local
champions like Tokopedia, Bukalapak, Fave, Shopee, Tiki, 11street
have their eyes on this swelling e-commerce market. In addition to
shopping, SEA’s mobile commerce space also bustles with ride-hailing
apps like Grab and Go-Jek; food delivery apps like GrabFood and
FoodPanda; and travel apps like Traveloka and Tiket.com among
many others.

However, the e-commerce growth rate does not show a pretty picture.
E-commerce players in SEA are plagued with high churn rates and
mobile app uninstalls that are undermining their growth potential.

3.8 million new users come online

each month in Southeast Asia.
Google and Temasek Research
Why Do Users Uninstall Mobile Apps?
While it’s great to see your app user-base swell, it’s equally disheartening to see some of
those users leave. We did a study on various geographies, devices, mobile OS, mobile
device manufacturer and so on.

Based on the study, we’ve observed that users could leave your app for one of the
following reasons:

Utility: Many times, users find that the app does not live up to the promises
made at the time of installs. For some, ease to perform an action say
subscribe to your service, create a playlist, or even purchase a product on
your app is the determining factor. Also, many users prefer apps that are
stable and do not freeze or crash upon rigorous use.

Trust: In today’s day and age of user privacy, consumers prefer to be

selective about the data and access they will share with an app. If your app is
constantly requesting access to the users’ social accounts, their PII
information, or sends invites and updates to their contacts without approval,
they’ll most likely hit the uninstall button.

Bloated: Users love to install new apps. However, with limited device
memory, they’ll prefer apps that require less space, load faster, and do not
cache too much data on their mobile devices.

Annoying: Push notifications are a great tool to engage users and boost
retention. However, if not used in moderation, push notifications can result in
uninstalls. Users uninstall apps that send them too many notifications. Also,
irrelevant content through in-app messages and notifications is also a major
cause of uninstalls.

Data consumption: Users also tend to uninstall apps that run in the
background and consume too much data while doing so.
Overall Uninstalls
We evaluated the behavior of 2.2 million e-commerce app users
in SEA, spread over a 90-day period. The results are depicted
with illustrations and hypotheses as below.

Retained Uninstalled

Retention Summary

Starting at the top, here are the overall uninstall trends for e-
commerce apps in SEA over the last quarter.

For all the users who installed e-commerce apps between D0 -

D30, you’ll see that only 27.36% of users are retained at the
end of the 90-day period.
 Weekly Uninstall Trends

16%

12%
% Uninstalls

8%

4%

0
W0 W1 W2 W3 W4 W5 W6
Week

We dissected this data to identify when uninstalls peak

based on weekly uninstalls. For all the users who have
uninstalled over a 90-day period, we found that,
1. 17.65% of users uninstalled within the first week.
2. The uninstalls from week 3 onwards is steady between
5.5% to 7.3%.

If you’re able to retain most of your users

beyond the first two weeks, there’s a
higher probability of retaining them.
 The first week is critical in terms of user retention and so we dug a
bit deeper and understand the uninstall trends within the days of
the first week. For all the users who uninstalled over a 90 day
period, we looked at uninstalls that happened between D0 - D10.

You can see that uninstalls peaked on Day 1 and Day 8. Which
means, these are the days you need to watch out for.

16%

14%

12%
Uninstalled users

10%

8%

6%

4%

2%

0
4
10

16

22

28

34

40

46

52

58

64

70

76

82

88
Uninstalled users
Day of Week Uninstall Trends

12
12
% Users

% Users
8

4 4

0 0

Th …

ay

ay

ay

ay
da

da
y

ay

ay

ay

ay

ay

sd

sd

id

rd

nd
da

da

sd

sd

id

rd

nd

on

es

ne

Fr

tu
ur
on

es

Su
Fr

tu

Tu
ne

ur

Su

Sa
ed
Tu
M

Sa
Th
ed

W
W

Uninstalls
Installs

It is interesting to see how these trends roll out over the days of a
week.
You’ll notice that:
The weekly install rate pegs around ~14% and there is no specific trend
there.
Users are more likely to uninstall their apps on Sundays.
Users are least likely to uninstall e-commerce apps on Mondays.
Physical Attributes
1. Mobile OS platform
Take a look at the uninstall trends for Android and iOS platforms
below. Notice that although the breakout of installs between
android and IOS is almost equal (51.8% and 48.2% respectively),
better retention is observed in iOS devices.

Retained Users

iOS Android

E-commerce apps retain more users on

iOS devices when compared to
Android.
Physical Attributes
2. Device Manufacturer
To understand the OS-level trends better, take a look at retention
numbers based on popular device manufacturers. We evaluated e-
commerce app users across the 90-day period to determine the
probability of app retention.
90

80

70

60

50
% Users

40

30

20

10

0
APPLE HUAWEI OPPO SAMSUNG XIAOMI OTHERS

Probability of retention

From the graph above, you’ll see that retention varies significantly across
mobile device manufacturers.
 Apple devices have the highest likelihood of user retention.
 Xiaomi devices have the lowest likelihood of user retention for e-commerce
apps.
Physical Attributes
3. City
Insights into the user’s location can help you tailor
engagement campaigns better.

Here’s what data tells us:

TIER 1
TIER 2
TIER 3
OTHERS

0 5 10 15 20 25 30 35 40 45 50
% Users

Retained Users Uninstalled Users

Tier 1 city users are more likely to retain

an e-commerce app when compared to
users from Tier 2 and Tier 3 cities.
Behavioral Attributes
1. Re-installed Users

A new user has a slightly higher likelihood of retaining the app

compared to a user who is re-installing the app.

Retained Users

New Install Re-install

Only 64.37% of re-installed users are retained when

compared to 71.7% of first time installed users retained.

Retaining new users is easier and

Mo Tip
economical when compared to
re-installed users.
Behavioral Attributes
2. Number of Sessions

You probably know that user activity and repeat visits to your
app are important indicators of retention. To understand this
correlation better we looked at all the users who uninstalled
the app over a 90-day period and grouped them based on
their session count. This threw up some interesting insights.
1. Out of all the users who uninstalled the app, most of them uninstalled
without performing 3 sessions.
2. The percentage of users uninstalling the apps begin to drop when the user
performs more than three sessions.

16

12
% Users

0
0 1 2 3 4 5

Number of Sessions Per User

Uninstalled Users
It is clear from the above graph that a user needs to perform at
least 3 sessions, this cohort helps you understand "how quickly"
you should drive users towards completing those 3 sessions. We
grouped our users into three cohorts D0, D1 to D7, and D7 to D14.
We then compared the retention likelihood of these cohorts,
based on their session count.

1. The retention likelihood for Day 0 cohort peaks at 3 to 4

sessions(77.8%). While the retention likelihood for Day 0 Cohort and
zero sessions is much higher(86.9%), we've ignored it, since the overall
user count of this segment is very small to draw any meaningful
conclusion.
2. You will also notice for the Day 0 Cohort, the likelihood of user
retention drops significantly at around 5 sessions.
3. Similarly, the likelihood of retention for Day1-7 and D7 -14 cohorts
starts peaking at around 3 sessions.

Mo Tip Encourage users to perform at

least 3 sessions on D0. After D0,
More sessions = Higher retention
Behavioral Attributes
3. Number of Push Notifications
Push notifications are an effective way to connect and engage with
your app users. Whether you want to send them a welcome note, a
sale alert, back in stock notification, or abandoned cart reminders -
push notifications are the easiest way to send that message over. We
decided to look at how push notifications affect retention.
To understand the correlation better we looked at all the users who
uninstalled the app over a 90 day period and grouped them based on
the number of push notifications they received. This threw up some
interesting insights.
1. Out of all the users who uninstalled the app, most of them
uninstalled if they received less than 4 push notifications.
2. The percentage of uninstalled users starts dropping significantly
when the user receives more than 5 push notifications.

30

25

20
% Users

15

10

0
0 1 to 3 4 to 6 7 to 10

Number of Push Noti cations

Uninstalled Users
It's helpful to know that you should around 5-6 push notifications
to increase the likelihood of retention. But if you are wondering,
when you should send those notifications, we've got you covered.

We grouped our users into three cohorts D0, D1 to D7 and D7 to

D14. We then compared the likelihood of retention for these
cohorts, based on the number of push notifications they
received.
Here are the insights:
1. The likelihood of retention for Day 0 Cohort peaks at 3 push
notifications(91%). You will notice the retention likelihood for Day
0 Cohort and zero push notifications is also high at 87%. However,
we've ignored this as the overall user count of this segment is very
small to draw any meaningful conclusion.
2. For the Day 0 Cohort, the likelihood of retention drops
significantly between 5 and 6 push notifications. Three push
notifications on Day 0 clearly seem to be a sweet spot!
3. Similarly, the retention likelihood for D1-7 and D7 -14 Cohorts
start peaking at around 7 push notifications.

In other words at-least "one push notification a day, keeps the

uninstall away".

Mo Tip To boost retention:

 Send 3-5 notifications on D0.
 Send 7+ notifications between D1-D7.
Behavioral Attributes
4. Number of Transactions

Users have installed their apps, they receive your push

notifications, and have visited your app. But are they transacting?
How do transactions impact retention trends? Take a look at what
we found.

To understand the correlation better, we looked at all the users

who uninstalled the app over a 90-day period and grouped them
based on the number of transactions they had performed.
5

3
% Users

0
1 2 3 4 5

Number of Transactions

Uninstalled Users
1. Of all the users who uninstalled e-commerce apps, most of them
uninstalled if they performed less than 1 transaction.
2. The percentage of uninstalling users begins to drop when users
perform more than 1 transaction.
3. Interestingly, the percentage of uninstall users increased between
4 to 5 transactions, but we wouldn't read too much into it since the
number of users who completed 5 transactions over the 90-day
window was fairly small.
It's helpful to know that you should drive more transactions to
increase the likelihood of retaining users on your e-commerce app.
However, you must be wondering when those transactions should
be driven? Again, we've got you covered.

Like we did earlier, we grouped our users into three cohorts D0, D1 to
D7 and D7 to D14. We then compared the likelihood of retention for
these cohorts, based on the number of transactions they completed.

Here are the insights:

1. The likelihood of retention for the Day 0 Cohort peaks at one
transaction(96%). You will notice the retention likelihood for Day 0
Cohort and 3 to 4 transactions is at 100%..! However, we will ignore it,
since the overall user count of this segment is very small to draw any
meaningful conclusion.
2. Similarly, the retention likelihood for D1-7 and D7 -14 cohorts is very
healthy as long as the user completes at least one transaction.

Mo Tip To boost retention:

Encourage users to perform at
least one transaction on DO.
Key Takeaways and
Recommendations
1. There are two critical leak points in the user’s journey on your
e-commerce app - these are on Day 1 and Day 8. If you are able to
retain users through these milestones, you have a higher probability
of growing your app’s retention rates.
What should you do? One way to achieve this is by breaking your
app engagement strategy as Day 14 retention and then Day 15-30
retention for new users.

2. Uninstall rate peaks on Sundays (4.22%). If this is a trend you’re

noticing on your app as well, here’s something you can try.
What should you do? Watch out for your Push Notification
campaigns on this day of the week. Are you sending too many
notifications? Or are you not engaging at all? The answer is to find a
median and send messages that matter and add value to your users.

3. Retention rates are higher on the iOS platform when compared to

Android. Also, when you deep-dive into the device manufacturers,
you’ll find that Apple devices retain the highest, while Xiaomi, the
lowest.
What should you do? A great user experience is one way to keep
users coming back to your app. Look at the device mix of your user
base and optimize your app experience and communication
strategy. One common challenge with Chinese OEMs is that push
delivery rates are very low, due to device and OS level restrictions. So
your users may not even be receiving your push notifications!
MoEngage's Push Amplification+ solution can help boost delivery
rates across these devices and improve app user retention.
4. Only 64.37% of re-installed users are retained when compared to 71.7%
of first time installed users retained.
What should you do? Re-installed users are most likely going to uninstall
the app again. The key is to retain users the first time and don't let them go.
User engagement and retention should not be an afterthought. Have a
user engagement and retention plan in place while creating your app itself.

5. There is a positive correlation between the number of sessions,

longevity of the user and the retention rate. Another definitive trend is
that most of the uninstalled users probably perform 1 or 2 sessions on Day 0
or Day 1.
What should you do? You have a very short timeframe to retain your users.
Nudge users to open your app at least 3-4 times within the first two days of
installing the app.

6. The likelihood of uninstalls is very high when the user receives less
than 3 notifications or more than 5 notification on the day they install
the app. Further, they are more likely to retain your app if they regularly
receive 1 push notification every day.
What should you do? Send at least 3 push notifications on D0 to bring
users to your app. This is the time when your users need to be onboarded
and shown the benefits of keeping your app. However, users may get
distracted or don't understand a specific part of your onboarding
experience and hence exit the app. Use push notifications intelligently to
bring them back to the onboarding journey. Once they are onboarded, it's
important to maintain a steady cadence of relevant push notifications
beyond Day 1.

7. Users who uninstall an e-commerce app within 90 days, usually never

perform a transaction. Also, the chances of a user uninstalling the app
drops if she completes more than 1 transaction.
What should you do? Demonstrate the value you’re bringing to your users
and encourage them to transact. The first 15 days are critical and if you are
able to help solve a problem for the user, chances are she’ll stick around.
 Best Practices to Retain E-
Commerce App Users
For marketers, the mobile-first world is a double-
edged sword. It is made up of millions of apps on
app stores and in-the-moment experiences
making it a tough place to survive. Even the
slightest misstep can send the customer swirling
away in the direction of dozens of other
distractions.
Ensuring customer retention in a mobile-first
world requires a strategic approach. There are
three basic tenets for customer engagement.
1. In the mobile-first world, users are people first and then customers. 
2. Make customers feel welcome right from the first engagement —
right from the moment they enter the mobile app or website. 
3. Create a relationship bond with customers. Relationships are what
ties people together.

Follow these 5 steps to customer retention:

1. Fulfill their hopes
Customers use a mobile app with the hope that it will fulfill their needs
and aspirations. Although most users do not recognize it, when they
approach a store, they are driven by the strongest human emotion –
that is hope. Right from the first instance, the mobile app should prove
itself capable of living up to the expectations of the user. 

2. Personalize
Know who your customer is on an individual level. Attention to small
details like addressing the customer by name, having a human tone to
the marketing message all contribute to customer engagement. The
baseline is to treat them as a person, not just a customer who pays
money. 
3. Deliver more than asked
To create moments of engagement in a constantly distracted
customer mind, it is essential to predict their needs and serve them
efficiently. Proactive service is a surefire way to build trust. The focus
should be on creating a unique experience that serves customer
needs. 
A unique experience is created when your app is able to deliver
more than what is asked of it.

4. Know your product/service better than anyone else

In the mobile-first world, customers have access to information more
than ever. Also, they themselves hold information like their user
personas, location, preferences, etc., which if tapped into by the
business can result in better engagement. 

5. Invite them to return

Customers need a small nudge now and then to remind of your
brand and their previous interactions. Don't stop your customer
interaction with just order confirmations. Extend it further with push
notifications, feedback surveys, thank you emails, etc.

A slight increase in
customer loyalty, even to
the tune of 5% can
generate lifetime profits
anywhere between 25%
to 95% per customer.
Implement Retention Strategies
For Your Mobile App
MoEngage enables you to identify common patterns among
churned users and progressively get better at keeping users coming
back to your app.

Measure key retention

metrics Determine trends
from both the users
returning to your app and
also those who have
churned. Use these insights
to offer relevant user
experience to users and
improve retention.

Find out what's going wrong

Gather insights and identify
leaks in your funnel at a
granular level. Eliminate
guesswork while ideating
customer engagement
strategy.

Implement retention
campaigns Create, visualize,
and deploy omni-channel
lifecycle campaigns to
engage and retain more
users on your e-commerce
app.
About MoEngage
MoEngage is an intelligent customer engagement platform,
built for the mobile-first world. With AI-powered automation,
optimization capabilities, and in-built analytics MoEngage
enables hyper-personalization at scale across multiple channels
like mobile push, email, in-app, web push, On-site messages,
and SMS. Fortune 500 brands across 35+ countries such as
McAfee, Samsung, and Vodafone use MoEngage to orchestrate
their omnichannel campaigns. MoEngage has been featured on
Gartner’s Magic Quadrant for two consecutive years and is the
youngest company on the list.

To learn more about omnichannel user engagement with

MoEngage, visit our website: www.moengage.com