Organizations need to strike a balance between user engagement and retention with the right strategy to generate revenue. It is possible if your product can build a relationship with its users.
The user’s first experience with your product drives their next visit, which leads to more engagement. When the user pays more visits and finds your product or service useful. It leads to more buying. Because of the trust and previous experience with the product, you will reach out to users again to find solutions to what the bond means.
Hence, we need to understand the relationship between user engagement and user retention and the best practices so that they are complementary to form an effective marketing strategy.
What is user engagement?
User engagement is the measure of how users take meaningful actions on your product, website, or application. This includes page view time, reviewing products, writing reviews, buying products, and more. Dedicated customers show loyalty, contribute to sales and brand promotion than the average customer. You can target users with the best good customer experience, personalize communications, improve product quality, and much more.
For example, if we are considering an ecommerce website. A user learns about a product on your website through social media, visits your website, reviews the product, and makes a purchase.
In the above scenario, users are not only visiting your website, but they are also doing activities that will generate income for your business.
Digital marketers can pursue user engagement strategies and KPIs for their business to improve engagement rates.
What is user retention?
A 5% increase in customer loyalty has the potential to increase profitability by 25 to 95%. User loyalty encourages one-time visitors and turns them into regular customers. It increases the user lifetime value with your brand and increases sales. Businesses need to check the average retention rate by focusing on the KPIs. We go to great lengths to attract new customers so we should make sure we stick with us for the long term.
For example, consider Zoho Projects, an effective project management tool that helps teams plan, track and complete projects. If a user periodically reviews the status of the project and doesn’t take any other action like assigning tasks or reviewing, this is hold.
How is user retention related to user retention?
A strong engagement increases the repeat customers who form the backbone of customer loyalty. In the same way, stronger retention of existing users makes user engagement easier. When you know a perfect strategy for one factor, you can see success in the other.
So customer loyalty brings customers back, which creates an opportunity for engagement. In addition, a high level of engagement increases user retention rates.
For example, Amazon keeps users with product recommendations based on their previous purchases and lets users interact with product pages. If a user likes your product, they’ll come back to the website with no effort.
Best practices for improving user engagement and retention
Because user retention and retention are related, you don’t have to work on them individually. Here are some best practices that you should follow in order to come up with the perfect strategy for improving both at the same time.
Reach customers on time
Reaching out to customers to help you install, use, and support your product is a great way to improve user engagement and retention rates. Nowadays, users consider customer service to be a crucial factor in choosing a brand. Due to the high response time, companies observe churn rates during the onboarding phase. You can use automated emails and notifications to help users on their onboarding journey and not to skip them. Use online chats like Drift, Freshchat, Zendesk, etc. to engage your audience anytime.
Leverage subscriber data
You can use the subscriber’s data to receive recommendations, subscriptions, offers, or support services. You can classify the subscribers according to their data in order to reach them. It can include conditions like country, state, IP address, subscription dates, and more.
For example, an OTT platform like Netflix can split users by subscription dates to send renewal notifications. It can use Trigger Push Notifications to send push notifications monthly or yearly. It helps improve user interaction without losing subscribers.
The above push notification for renewal is from the OTT platform for their subscribers.
Segment customers into target groups
Segmentation can be a powerful tool to increase both user engagement and retention. Marketers do research on subscribers to segment them. It helps prepare perfect marketing strategies that outperform the competition.
Push notification tools are a great way to implement segmentation in marketing campaigns and get more users involved. You can segment audiences by country, gender, state, browser, day of the week, time of day, and more.
For example, a beauty store aims to retain users who have been inactive for a while. In this case they can use the segmentation function of the push notification tool. Marketers can split users by their last visit date to receive push notifications.
An example of a beauty store engagement push notification used to engage inactive users.
Marketers can analyze notification performance using metrics like views, clicks, and hourly open rates. It helps to distinguish segments with high and low profitability. With all of this input, you can develop a user engagement plan to engage the audience.
Approach users again with personalized notifications
Every customer is different from others. This can relate to the use of the services, subscriptions, page visits, payment options and more. It is important to focus on each type of user and increase their loyalty to your company. So personalized push notifications are very effective in promoting visits to a website.
For example, let’s say a travel website saw more user visits on Saturday and Sunday. To convert these visits into conversions, send push notifications of exclusive offers. Marketers can use day of the week segmentation and reach the target audiences.
This is a push notification from a travel website trying to appeal to users who visit on the weekend.
User retention and retention go hand in hand to stabilize and improve sales. Improve both at the same time with the perfect strategy that works for your users.