Why must we prioritize improving the user experience for our fintech app?
In today’s app store, users have no patience for apps that don’t deliver immediate value. Even if they do stick around, it’s a constant battle to keep them engaged and coming back. That’s why the retention rate is absolutely essential.
First, let’s understand what the retention rate is. It is the percentage of users who continue to use an app after a certain period of installing it, indicating user engagement and satisfaction with the app. For example, high retention rates show that users find the app valuable and are willing to continue using it. In contrast, low retention rates indicate that users need help finding the app helpful or engaging enough to keep it installed.
Hence, to improve your fintech mobile app retention rate, here are some strategies you should follow on How to improve retention rate of an app:
Optimize the app store listing: The objective is simple, attract new customers and retain existing customers through continuously increasing app downloads, more engagement, and high retention rates. You could employ a smooth onboarding experience, various content to engage the audience, and fun elements to attract new customers.
It is essential to keep enhancing your app store listing to be competitive; for that reason, you must remember to display the benefits, uses, and rewards of using this app. Also, the listing should not be too educational; it should be straightforward and emphasize more the value that the user receives in installing the app and display the insightful information that offers competitive benefits.
Seamless Onboarding Process: If you give too much information, it could be too much to process, and content can become a barrier to customer retention, so we recommend keeping it simple and highlighting only the core benefit of the app. Figure out the easiest and quickest way to help customers sign up.
Give an Attractive Reward Program: Did you know that more than 50% of users use attractive offers and rewards applications? When you introduce a rewarding system, they feel they are progressing and unlocking the next level as an achievement, so consider incorporating one into your app. Notice that you will increase your loyal customers and increase growth revenue through this.
Features to improve retention rate in an app
Furthermore, you can improve your fintech mobile app retention rate through features. Here are some of the features most used by the best fintech applications:
- Biometric sign-in: This is a key driver for security and convenience in today’s fintech apps because, from a user perspective, they can open the app with a simple scan of their face.
- Voice-assisted banking: Voice command functionality is a growing trend in digital banking and Fintech. This feature enables users to perform app tasks through spoken instructions. This imitation of a human touch can do fantastic things to your retention.
- Personalized UI/UX: Customizing the user experience is crucial for retaining app users as it gives them a sense that the app was tailored specifically to their needs. In Fintech, an app works best when it adapts to each user’s journey and behavior.
It is essential to mention that young people (Gen Z) are significant for fintech apps because they spend more than 2x the time using mobile apps daily than those 45+; for that reason, it is crucial to develop an app suitable to them.
In general, this generation quickly gives up on new apps, and a common cause of high churn is poor user experience. In Fintech, young users expect free accounts, 24/7 support, and a customer-centric design, with features such as built-in savings tools or expense sheets. Therefore, we recommend incorporating gamification examples like challenges, leaderboards, and point systems.
How to calculate the retention rate for your mobile app
Regarding the retention rate of mobile apps, you need to understand two things. First, what counts as an engaged user, and second how long is the time you will take as a measure to make the calculation.
Then, How to Calculate Customer Retention Rate?
Retention rates are usually measured over a specific period, such as 30 days, 60 days, or 90 days. You will need to select the time you will be working with, and then you will require to define three things:
-The number of customers at the beginning of a defined time.
-The number of customers your company gained during the period.
-The number of customers at the end of the time.
Once you’ve determined these numbers, here is how you can calculate retention rate:
Retention Rate = (number of customers at the end of the period – number of customers acquired during the period) / (number of customers at the start of the period) * 100
How to check mobile app retention rate
Understanding app retention benchmarks is important to ensure your app remains competitive. Retention rates vary significantly by industry, with some sectors having higher rates than others.
The fintech app is higher because people link their bank accounts and provide more financial details. Thus, the average retention in the fintech vertical looks like this:
- 1 Day: 23%
- 7 Days: 16%
- 30 Days: 11%
We recommend tracking your weekly, monthly, and yearly retention rate and comparing it to your previous performance. This will help you determine if your app is still competitive in the market.
In this way, you can also apply cohort analysis by taking a large group of customers or users and dividing it into smaller segments that share specific characteristics over a set period; this will give you an insight into customer tendencies.
What is the average retention rate for fintech and financial services?
When companies focus on their customer retention rate data, it helps reveal what’s effective and what’s not. Identifying patterns among customers who don’t return, known as attrition or churn rate, can provide valuable insights. Additionally, common complaints can shed light on areas that need improvement. Typically, customers return to businesses when their expectations are met. Therefore, a high churn rate might indicate that customer expectations are not being fulfilled. This could be due to poor customer service or unresolved negative experiences. Analyzing this data empowers companies to take corrective actions, improve customer satisfaction, and foster long-term loyalty and retention.
The average retention rate for the financial services and fintech industry is 78%.
Though rarely achievable, the ideal customer retention rate would be 100%, indicating that all customers remain loyal. Conversely, the lowest possible retention rate would be 0%, suggesting no customers are retained. Each industry establishes its unique average Customer Retention Rate (CRR), which typically falls within a range in between. Across various industries, the average customer retention rate typically hovers around 70% to 80%.
How push notifications impact mobile app retention rates
Studies indicates that push notification has increased retention rates between 125% to 180%. It means they are a powerful tool to re-engage users and remind them of the app’s value. They should be highly relevant, personalized, and remind the goal.
Notice that push notifications can be a double-edged sword; if you send too many, you can annoy users. To succeed, you should: personalize notification times based on opening rates, be careful never to spam users with too many notifications, and A/B test your messages.
Another type of notification is in-app automated messages. It is a great way to keep customers in the loop and continuously engage with your app. Notice that this kind of notification has a higher open rate when compared to the other mediums.
Fintech perform metrics
To measure results, you need to determine clear objectives; for that reason, you need to create S.M.A.R.T. goals: Specific, Measurable, Attainable, Relevant, and Time-bound; with this in mind, you will get a full view of how well you’re engaging your users.
Let’s look at metrics you can use to measure fintech App performance:
- Average time to first transaction: How long does it take users to complete an action? Whether your goal is for users to set up direct deposit, buy stocks, or do their banking online, this KPI will help you optimize the process, decreasing the time it takes users to make the first transaction and improving your app user acquisition strategy.
- Active users: This will help you determine if more or fewer people use your app over time. You can track them by daily active users (DAUs), weekly active users (W.A.U.s), and monthly active users (MAUs).
- Stickiness ratio: This will give you a clear understanding of what makes an active user. You can calculate it with your active users. For example, a stickiness ratio of 20% means that one in five of your monthly users engages with your product at least once a day.
- Install-to-registration rate: This will measure the percentage of registered users after installing your app. This KPI is high in fintech apps, so it is recommended to keep an eye on it.
- Churn Rate: Refers to the percentage of customers who leave the service within a specific period, which indicates customer dissatisfaction or better alternatives available.
It is essential to know that there are a lot of different metrics, but you will have to find which ones are most useful to your goals. Remember that you can engage your customers better by incorporating perfect strategies and processes.
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At ThinkUp, we are a digital product development company, obsessed with quality and specialized in mobile apps and unique user experiences. We create world-class digital products for startups and enterprises, with the goal of transforming and empowering businesses.
