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How to Increase Customer Retention with a Mobile App

Written by: Mowico Team

6 min read

In a world where ecommerce is catching up with physical commerce, the importance of customer retention is becoming heavier compared to customer acquisition, and the reason is clear. Customer loyalty has come to a point where nobody can ignore it. According to a study by Gartner, 80% of the future profits of a business come from 20% of existing customers. 

Every day, we see new customer retention strategies, but with the domination of mobile devices and mcommerce, one of the most effective ways is to increase customer retention with a mobile app. 

If having a mobile app seems like a far-fetched scenario for your ecommerce business, don’t worry—Mowico’s got you covered.

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In this article, we will share how mobile apps increase customer retention and why it’s inevitable to own a mobile app for your business to stand out in the ever-growing crowd of ecommerce.

What Is Customer Retention? 

Customer retention is a business strategy that aims to keep customers coming back and buying from the same brand. There are many ways to achieve higher customer retention rates for different branches of businesses. 

A company may increase customer retention by providing grade-A customer service, free shipping, or discounts. But the basic rules of customer retention cannot keep up with the demands of today’s ecommerce arena, as the basics of retention have long become the norm. 

Retaining customers is essential because it not only saves on marketing costs but also increases revenue and profits. And in a mobile-centric world, there are new ground rules that are proven to work to increase customer retention.

Customer Retention and Mobile Apps 

The link between customer retention and mobile apps is getting stronger each day. With increasing global mobile adoption, customers can find products, view reviews, and make purchases easier and faster with mobile apps. But there’s hidden proof with mobile apps that aren’t talked about enough: their impact on user retention

how to boost customer retention with mobile apps

Ecommerce apps come with many advantages that boost sales and broaden your reach, but if you follow some simple rules that increase customer retention with mobile apps, it may become a shortcut to success. In the following chapter, we will share mobile marketing strategies to improve customer retention.

Strategies to Improve Customer Retention with a Mobile App 

Mobile commerce opens new paths to ecommerce businesses, and when it comes to reaching existing customers, they become even more viable. All you need to do is make users download your app! Here are three main ways that you can increase customer retention with a mobile app:

Push Notifications 

Push notifications are a proven way to increase customer retention. They are a great tool for businesses to retain their customers and keep them engaged. Since push notifications don’t require users to do practically anything other than launching the app, they provide an opportunity to reengage customers with the app.

Studies show that mobile app users who receive push notifications at least once a day have 820% app retention than users who don’t.

Push notifications can be used to steal the attention of customers in many ways, like offering limited-time coupons, rewards, cart reminders, or even holiday seasons. And if they are used correctly, they can be a great tool to build a solid loyalty program as well. Read our guide to using push notifications in the best way possible in our previous blog post.

In-App Messaging 

In-app messages are an essential part of customer retention. They are used to provide the user with relevant information, notifications, and reminders that can help them make a purchase, creating a smoother customer experience.

In-app messages receive an engagement rate of 26-44%. 

One of the best parts of in-app messages is that they cost less than other marketing channels. Plus, since they create a real-time conversation with the customer, they are more effective in retaining customers than email campaigns or even push notifications.

Social Commerce 

Social commerce is the new way of doing business. It has become a trend in recent years as it helps retailers increase customer retention and boost sales.

Some companies are using it as a marketing tool to get more customers, offering discounts, promotions, and rewards for customers who like, share or follow their company on social media platforms. But the real deal happens on the social media platforms that let users shop without leaving the app, and having a mobile ecommerce app can easily get you ahead of the social commerce competition.

Loyalty Rewards 

The terms brand loyalty and loyalty programs have been around for decades and have proven to be very effective in increasing customer retention rates. They motivate customers to keep shopping with the company by rewarding them with discounts and other benefits. 

According to eMarketer, 58.7% of users say that earning rewards and loyalty points is one of the most valued aspects of the shopping experience.

When met with the capabilities of a mobile app, loyalty programs can become even more appealing to customers, thanks to the ability of quick action-taking. In the end, both brands and users win something that they couldn’t have otherwise. 

Have an eCommerce Mobile App Within Hours! 

There’s no doubt that mobile apps are game-changers for the eCommerce industry, but you may be thinking, is the time and money really worth it to build an app from scratch? Well, a couple of years ago, you might have been right, but today, there’s Mowico—a no-code app builder that lets you turn an eCommerce store into an app. 

Whichever platform you’re on, you can turn your store into an eCommerce app with Mowico eCommerce mobile app builder. So yes, you can create a Shopify mobile app with no coding knowledge with Mowico’s drag-and-drop, no-code app builder

Try Mowico now to see how easy it is to create your own eCommerce mobile app.

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