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Churned Users, Cohort Analysis, and User Engagement

Last edited 480 days ago by Peter Sigurdson

The marketing funnel process:

First create Awareness

Second,inspire the user to download the App

Third: Incentize users to progress through higher levels of engagement with our App: And become Advocates to their friends to use Our App.

A highly engaged user in mobile app marketing is someone who regularly uses the app and performs the desired actions, such as making purchases or sharing content. Engaged users are more likely to continue using the app, less likely to churn, and have a higher lifetime value, which leads to increased revenue for the app.

Mobile app engagement is providing users with a reason to keep coming back to the app or open it and perform the desired action

To increase user engagement, mobile marketers can adopt unique techniques like cohort analysis to gain critical insight into user behavior that can be leveraged

By identifying activities, features, or changes that work for customers, marketers can create an engagement strategy that boasts high-quality communication.

A churned user is a user who has stopped using an app. Churned users can degrade app store optimization (ASO) by reducing the number of active users and downloads, which can negatively impact the app's visibility and appeal in the app stores

Churned users can also impact the app's conversion rates, because the app store search engine optimzation will position your App lower down in the search rankings. Because App Store positioning is a major factor in driving new customers, this reduces the sales and virality of your App.

This is one reason why giving away free apps may not be a good idea. People will download the app out of curiosity but never use it.

App Success = Downloads PLUS User Engagement.

To reduce churned users, developers can use ASO to engage with the right users, provide tutorials and seamless login to improve the onboarding experience, make the technical experience as smooth as possible, and provide incentives to give users a reason to come back.

By monitoring churn numbers and identifying the causes of churn, developers can improve the user experience and keep users coming back. ASO is used to optimize mobile apps to increase their presence within app stores and get more downloads or users of the app

By reducing churned users, developers can improve ASO and increase the number of active users and downloads, which can lead to more loyal users and long-term success for the app.

How does app store instrumentation help us track user engagement with your app

App store instrumentation helps track user engagement with an app by providing data on user behavior and interactions with the app. App store analytics tools like App Store Connect and App Analytics allow developers to view the number of unique paying users by day, week, or month, and filter sales per paying users by source to learn the average spend per user from a particular campaign, app, or website

By creating a conversion funnel, developers can track what users experience and ultimately click on throughout the app, which can help to measure user engagement

App store instrumentation can also provide insight into user engagement metrics such as session length, retention rate, and churn rate, which can help developers to understand how users are interacting with the app and identify areas for improvement.

How does app store instrumentation work

App store instrumentation works by providing developers with tools and data to measure their app's performance and user engagement.

App Analytics, Sales and Trends, and Payments and Financial Reports are some of the tools available in App Store Connect that allow developers to gain insights into their app's performance and user engagement

These tools provide data on user behavior, such as the number of unique paying users, sales per paying users, and app downloads, as well as user engagement metrics like session length, retention rate, and churn rate

Developers can also create a conversion funnel to track what users experience and ultimately click on throughout the app

By analyzing this data, developers can identify areas for improvement and make changes to increase user engagement and app performance.

Mobile App Marketing Planning Activity Worksheet: Cohort Analysis and User Engagement Optimization (Amplifying your Marketing Efforts)

Cohort analysis can help mobile app marketers to incent users with free upgrades or other benefits at key points in their progression as users of the app.

Knowing which cohort they are in lets marketers time doing this.

By grouping customers into cohorts based on their behavior and interactions with the app over a certain period of time, cohort analysis can reveal user behavioral patterns and trends hidden in time series.

Cohort analysis can also be used to measure customer retention rate from the time they begin using a product or service, and track user activity within a newly-released app from when they first download it

Employing cohort analysis for user retention helps marketers to understand the number of customers who continue to be active users in the days/weeks/months that follow, and to see the effectiveness of when strategies were initiated

Introduction

Cohort analysis is a powerful tool that allows businesses to understand their customers and track their behavior over a period of time. By grouping users into cohorts based on shared characteristics or behaviors, and examining their progress through key milestones, companies can make informed product decisions that reduce churn and increase revenue [1]. This worksheet will guide you in teaching your students about the concept of cohort analysis and help them develop strategies for moving app users through the optimal progression path, turning them into highly engaged users.

Cohort Analysis and User Engagement Optimization Process

Identify Cohorts: There are two types of cohorts: acquisition cohorts and behavioral cohorts. Acquisition cohorts divide users by when they signed up for the app, while behavioral cohorts divide users by the behaviors they have taken within a given time period [2].

Analyze Cohort Data: Examine user behavior and engagement within each cohort to uncover trends and patterns. This analysis can provide insights into the long-term and current health of a business and help predict churn [3].

Identify Key Milestones: Determine the critical moments within the user's journey that indicate engagement and success. Examples of milestones include:

Completing a tutorial or onboarding process

Achieving a certain level or score

Making an in-app purchase or subscribing to a premium service

Inviting friends or sharing content on social media

Optimize User Progression Path: Based on your cohort analysis and key milestone identification, develop a plan to optimize the user progression path within your app.

Consider incentivizing users with free upgrades or other benefits at key points in their progression, as knowing which cohort they are in allows for targeted timing of these incentives.

Amplified Planning Activity Worksheet

Use this worksheet to guide your cohort analysis and user engagement optimization efforts.

Complete each section to develop a comprehensive plan for optimizing the user progression path within your mobile app.

Identify Cohorts: List at least three cohorts based on shared characteristics or behaviors.

Cohort 1:

Cohort 2:

Cohort 3:

Analyze Cohort Data: For each cohort, identify key metrics and analyze the data to understand user behavior and engagement.

Cohort 1 Metrics:

Cohort 2 Metrics:

Cohort 3 Metrics:

Identify Key Milestones: List at least three key milestones within your app that indicate user engagement and success.

Milestone 1:

Milestone 2:

Milestone 3:

Optimize User Progression Path: Based on your cohort analysis and key milestone identification, develop a plan to optimize the user progression path within your app. Include strategies for incentivizing users with free upgrades or other benefits at key points in their progression.

Step 1:

Step 2:

Step 3:

Incentive Strategy 1:

Incentive Strategy 2:

Incentive Strategy 3:

Conclusion

Cohort analysis is a powerful tool for understanding user behavior and engagement in mobile apps. By identifying cohorts and analyzing their data, you can uncover valuable insights that inform your optimization efforts, including targeted incentives for users. Use this amplified instructional narrative and planning activity worksheet to teach your students about the concept of cohort analysis and help them develop strategies for moving app users through the optimal progression path, turning them into highly engaged users.

References:

[1]

A beginner's guide to cohort analysis: How to reduce churn …⁠

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[2]

Cohort Analysis: Beginners Guide to Improving Retention⁠

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[3]

Cohort Analysis: An Introductory Guide for Better Retention⁠

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The marketing funnel process:

App Success = Downloads PLUS User Engagement.