The expansion in technology has lead to the increase in usage of the cashless transaction as people find it secure and easy. There is a flurry of digital payment apps in the market, but the organizations need to understand that a high number of downloads isn’t the only magnitude that should be used to gauge the popularity and success of the app. According to researches, only 32% of the users return to the app after downloading it 11 times or more.
Future of Digital Payment App
The digital payment industry is expected to grow at a 33.8% CAGR and is forecasted to attain the market size of $4574 billion by the year 2023. For example, in India, demonetization played a significant role in increasing the use of digital payment apps, and Paytm emerged as the biggest gainer. Paytm has the largest market share (78%) of the total digital payment apps in India.
Improvement in user retention remains the bottom line for the success of any app on the App Store or the Play Store. An experienced mobile app development company will not only help in rapid growth of your digital payment app but will also provide adequate measures to increase user retention.
It’s time to dig deep and understand the crucial points that will increase user retention in your digital payment app.
Enhancing the ‘First Time User Experience’
Businesses need to understand that if they provide a great onboarding experience to the user, the retention rate can increase several times. An excellent onboarding experience will enable the user to accept your digital payment app better, as a good onboarding process would allow the crucial things like registration and adding your wallet to the digital payment app easier.
To enhance the first time user experience, try and include only those steps that are utterly necessary for the process. Show the app features during the registration process to the user, but don’t overdo it. Once a user register’s with your app, you can send attractive and personalized push-notifications for coupons and in-app updates and encourage them to add money to the wallet.
The advantage of push notifications is that it enables the app to send offers according to the user’s likes. Highlight the mobile app’s main features so that the user is hooked to the app and can begin using the app at the earliest.
If you are showing the immediate benefits of your digital payment app at the start, it will play a vital role in turning your customers into loyal users and create a long-term association with them, enabling you to achieve sustainable growth.
Focus on retention before churning out
If you have a high amount of ‘app-stickiness,’ the user retention rate will rise positively. On the other hand, churning refers to a situation where the user stops or reduces the number of interactions with your digital payment app. To elevate the user experience in this condition, you need to continually monitor the behavioral changes of the customers, analyze them, and then decide a plan to re-engage them proactively.
By tracking the changing trends, you can get into the good books of the users as they would understand what value your digital payment app offers and positively increase the long-term retention. Don’t forget to engage the customers with timely and personalized in-app updates that will compel them to visit your app again and thus bring down the churning rate.
Doing a cohort and an RFM analysis will help you to monitor the retention rates of different segments of your digital payment app and distinguish which user of which section is at risk of bowing out of your app.
Don’t let the churned users go.
It is the tech world’s bitter truth that no matter how many wonderful features and functionalities you add to your digital payment app, there would be some users who would churn out. The trick is to re-target the users who have left your platform to increase the user retention rate by knowing their pain points. It helps in restoring the relationship and increases the confidence of the user in your application.
Moreover, to reduce the churning rate, you must first develop a MVP (Minimum Viable Product) before you release the actual app with full features. MVP will play a vital role in enhancing your knowledge about customer behavior, and thus you can develop the final product accordingly. In addition to this, since you have a clear idea about what to include and what to omit in the app, a MVP will enhance the process of app development and allow you to release the full version of the app at a faster pace.
Personalized push notifications will help you regain the user attention and, thus, accelerate your remarketing measures. The critical factor that will help your organization in implementing the re-targeting effectively is whether you can provide the user with a lasting experience or not. Timely reminders will also help in repeated purchases from the users and will set long-term retention on a positive note.
Not forcing app engagement.
Businesses should understand that users involved in natural app engagement are more likely to stay than imposing your app on the users. For sustainable revenue growth, it is essential that your targeted customers meaningfully engage with your digital payment app.
For this, cultivate personalized app user engagement campaigns by tracking the app usage trends through the data available with you. Based on the data, the push notification technology will help you in this process and encourage the customers to repeat their purchases. Specific behavioral analytics of the users with the data insights will drive the engagement rate further. It will keep the user hooked to the app for a longer period of time. Short reminders about completing their profile, updating their wallet, what benefits your app will provide, etc. will keep the user on their toes and happily loyal to your app.
In addition to this, the happiness quotient can play an important role in positive ‘word of mouth’ publicity about your digital payment app and improve your brand image apart from enhancing your user base. Moreover, keep an active note about the users’ activities and whether they are dropping early without getting through the cart as this kind of behavior might be the early signs of customers churning out from your app.
The digital payment app industry is on the rise, and the competition is getting tougher by the day. Thus it becomes essential for the organization to analyze the needs of the users, focus on them, and then come out with a customer-centric mobile app. At Prismetric, we understand the customers’ pulse because of our vast experience and thus will render you state-of-the-art digital payment apps that will make you the leader of your genre.