Tip #2 Customer Growth Powered by App

In the world of marketing, we have 3 top customer segments that keep us on a clear

path for overall customer growth.

Those customer segments are our new, returning and reactivated customers. It means we are growing, relevant and a cornerstone even dormant customers will find a reason to come back to. Through value, frequency and engagement we can formulate ways to describe these customer types into new, loyal and at risk just to name a few. When we talk about app value props adding peace of mind for users (see previous blog), app can also drive invaluable peace of mind for a business when it comes to these crucial segments.

Let's Dig In:

New Customers: On average, new app customers tend to be significantly more valuable than new website customers. Studies suggest that new app customers can be up to 2-3 times more valuable than new website customers in terms of revenue generation compared to new website customers. This increased value can be attributed to several factors including:

higher purchase frequency, larger average order value and greater overall engagement levels. Additionally, the ability to offer personalized experiences and targeted promotions within apps often leads to higher conversion rates and customer satisfaction, further enhancing the value of new app customers to businesses.

Returning Customers: On average, app customers tend to have significantly higher retention rates compared to website customers. Studies have shown that app users typically exhibit retention rates that are 2-3 times higher than those of website users. This heightened retention can be attributed to several factors, including:

convenience and accessibility of apps on mobile devices, the ability to send push notifications for re-engagement, and the personalized user experiences that apps can offer.

Reactivated Customers: On average, an app is significantly more likely to reactivate customers compared to a website. Studies have shown that app users are approximately 5-6 times more likely to be reactivated compared to website users. This higher likelihood can be attributed to several factors inherent to apps, including:

push notifications, personalized user experiences, and the ability to directly engage with users on their mobile devices. Additionally, apps often have features such as in-app messaging and loyalty programs that facilitate reactivation efforts, further enhancing their effectiveness in bringing back dormant users.

New user acquisition can be crucial for customers with a mobile-first mind on the hunt for the best experience, but app truly thrives to feed the connection between returning and reactivated users, providing relief for those all too familiar company pain points. Studies have shown that app users are approximately 3-4 times more likely to make a second purchase compared to website users. This increased likelihood can be attributed to factors such as the convenience and accessibility of apps along with many of the tools and capabilities shared above.

Keep reading for more app tips to grow your brand.