What Are Good Cohort Retention Rates for Week 1, 2, and 5 for E-Commerce Mobile Apps?

Cohort retention rates are crucial for understanding user engagement with e-commerce mobile apps. While retention rates can vary significantly based on the app's specific niche and market, there are some general benchmarks that can be used as a guideline. This article will explore the retention rates for weeks 1, 2, and 5, and discuss the factors that influence these rates.

Week 1 Retention

For e-commerce mobile apps, a good week 1 retention rate is between 20% and 30%. This means that 20% to 30% of users who installed the app return to use it within the first week. Achieving this rate suggests that the app has captured the user's interest and they found value in their initial experience. A smooth onboarding process and an intuitive design are key to this success.

Week 2 Retention

By the second week, the retention rate is expected to drop slightly. A good range for week 2 retention is between 15% and 25%. At this stage, users are looking for ongoing value and reasons to continue using the app beyond the initial excitement. This drop might be due to a lack of engaging content or features that the user found valuable initially.

Week 5 Retention

Week 5 retention is a critical milestone as it indicates whether users are still finding the app valuable and are willing to use it regularly. A good retention rate for week 5 is between 10% and 20%. Regular users who continue to engage with the app are vital for long-term success. They provide valuable feedback, promote the app, and contribute to the app's sustainability.

Factors Influencing Retention Rates

Various factors can influence retention rates in e-commerce mobile apps. These include the user experience, the value proposition, engagement strategies, and market competition.

User Experience: A smooth and intuitive onboarding process can significantly enhance user retention. Users are more likely to return if the app is easy to navigate and understand. Security and privacy features are also critical, as users are becoming increasingly aware of and sensitive to these issues.

Value Proposition: Clear and compelling value propositions, such as exclusive discounts or unique offerings, can encourage users to return. Customers are more likely to engage with an app that offers them something they didn't find elsewhere.

Engagement Strategies: Push notifications, personalized recommendations, and regular updates can help retain users. These strategies make users feel connected to the app and its community, increasing the likelihood of continued engagement.

Market Competition: The level of competition within the app's niche can also impact retention rates. Users have many choices, so providing a unique selling point is essential.

Additional Insights

By analyzing data from millions of app sessions, interesting trends have emerged. Interestingly, 50% of newly acquired users transact on the same day they launch the app for the first time. Within the first three days, 75% of newly acquired users make their first purchase. Additionally, 50% of those who repeat transactions do so within one day, and 75% repeat within a week. These insights highlight the importance of onboarding and immediate value to drive user engagement.

Conclusion

While the retention rates provided serve as a general guideline, each app should analyze its own data and context to set realistic and meaningful retention goals. Regularly monitoring and optimizing user experience can lead to improved retention rates over time.