How to Do Mobile App Personalization that Drives Engagement and Retains Users?
By: Andrea Knezovic
Tags: Mobile Apps, Mobile Marketing Tips, Mobile Marketing, Mobile, Mobile App Marketing

Is your app engagement dropping? Are you losing users left and right? You should consider mobile app personalization.

People are tired of generic interactions with their apps. That includes content and notifications that are not relevant to them. That’s very common. Would you use an app that doesn’t solve your specific problems or caters to your specific needs? You wouldn’t.

That’s why you should include personalization in your mobile marketing strategy. It will boost engagement and increase user retention.

What Is Mobile App Personalization?

Customization is all about the user making changes and choosing what they want in an app. Personalization is much more dynamic and happens in real-time. It’s about tailoring the app experience to meet the needs of a specific user.

When you go to Starbucks and order a latte with soy milk, sugar, and extra foam — that’s customization. But when the barista already knows what kind of coffee you like — that’s personalization. So personalization is a step beyond customization.

The thing about us humans is that we want to feel special. We want to feel that we are understood and that our needs will be met. That’s why users love personalization. It’s as though everything is tailored made just for them.

Mobile app personalization can include push notifications, recommendations, suggestions, tips, discounts, special offers, etc. All of it individualized and relevant to the user.

Benefits of Creating a Personalized Application

Still wondering why go through all the trouble of mobile personalization? Here are a couple of benefits that will change your mind.

Higher User Retention

With over 5.4 million apps available in app stores right now, it’s safe to say that the market is very crowded. Why would anyone use your app, when there are hundreds of similar ones in the app store? Add to that the fact that 25% of users abandon apps after just one use, and the future of your app is looking pretty gloomy.

But don’t give up just yet. This is where app personalization comes in.

By creating a personalized app experience for the users, you give them more reasons to keep coming back to your app instead of ignoring it. If an app is tailored to your needs and provides you with relevant offers, discounts, or recommendations, wouldn’t you use it regularly?

Personalization also makes your app stand out from the crowd. Why? Only 28% of all apps are personalized according to Evergage. So in a crowded market, that’s a great way to gain an advantage over your competitors and improve app retention.

Better Customer Experience

Which app would you prefer as a customer?

An app that offers you generic products that don’t interest you and offers that are not relevant to you. An app that offers you products and services based on your shopping history, interests, and preferences.

The second one, right?

Mobile app personalization has a huge impact on overall customer experience. It takes care of the users, makes things more convenient, easier, and faster.

In a study done by eMarketer, 35% of users say they want more personalization. So if you’re wondering how to improve customer experience, listen to what people are saying. In research done by Evergage, 84% of businesses report that customer experience is the key driver behind personalization.

More Engagement and Conversions

All of us know that an app is just a piece of software, not a real human being. However, we still don’t want to feel like we’re getting messages from a robot. That’s why people love personalization. It gives them an illusion of human interaction. And that drives engagement.

When users are presented with relevant content that’s tailored to them, they will engage with it. And what do you think happens when a user receives a personalized offer or discount? They’re much more likely to make a purchase. It shows them that you understand and take care of them.

When you give people what they want, need or like, they’ll engage with it. It’s that simple.

Increased Brand Loyalty

No matter what kind of business you have, brand loyalty is paramount. Loyal customers make repeated purchases, recommend you to their friends, and engage often. According to Localytics, they generate 25% more in-app purchases than other users.

And when you have a personalized application, brand loyalty goes up. When you cater to the specific needs of a user, they repay you with loyalty.

Keep in mind that 33% of customers abandon a business (according to Accenture) because personalization is poor or non-existent. So if you want to keep your customers and make them loyal to your brand, focus on mobile personalization.

Besides an increase in brand loyalty, personalization can also bring you higher revenue. Gartner reports that by 2020, personalization will boost the profits of digital businesses by 15%.

How to Personalize Your Mobile App?

Now that you know why personalization is important, let’s get into how it’s done. It’s not that hard.

Collect User Data

Before you can personalize your app, you need to collect user data. That will help you understand your users — who they are, what they want, what they need, what their preferences are, etc. Once you have a clear understanding of that, you can create a custom experience for them.

Here’s the kind of data you should collect:

Age

Gender

Interests

Profession

Location

When they’re using the app

Which devices they’re using

User preferences

Likes and dislikes

Purchase history

App activity

Etc.

After you collect all the necessary data, notice patterns that emerge, then create groups of similar users. Segmentation will make the app personalization process a lot easier.

Personalize Push Notifications

Did you know that 68% of users have push notifications enabled? So it’s not like users don’t want to interact with the app. The challenge is sending them relevant and engaging push notifications. If you personalize push notifications based on user demographics and behavior, you will keep things interesting.

Push notifications are used in many different ways. One is location-based. Factual reports that 9 out of 10 marketers say location-based marketing resulted in more sales. So perhaps you can send a discount code when the user is near the store. Or you can recommend a type of restaurant they like in their vicinity. Or even alert them of severe weather in their area.

If they haven’t used the app for a while, you can send a reminder. Perhaps you’ll send tips based on their specific interests. Or you’ll alert them that their favorite shoes are on sale. The possibilities are endless. No matter what kind of app you have, you can benefit from sending personalized push notifications.

However, keep in mind that the users need to opt-in to receive them. And also make it easy to opt-out. You don’t want to harass people.

Personalize In-App Messages

Unlike push notifications, users get in-app messages while they’re using the app. And you should personalize them as well.

A simple way to personalize in-app messages is to address each user by their name. It’s basic, but it’s still a nice touch. You can also notify a user when they complete a milestone related to your app. Or you can send product recommendations based on their interests, needs, purchase history, etc. Noticed that the user didn’t buy anything through the app? Offer them free shipping as an incentive to buy.

Segment’s research found that 49% of people purchased something after getting a personalized recommendation.

No matter what kind of approach you take, make sure in-app messages are tailored to that specific user. You can’t go wrong with that.

Respect the Privacy of the Users

Another important thing to mention is the privacy of the users. Studies show that users generally have no issue with giving out data to get more personalization. Salesforce’s study found that 57% of people will trade personal information for personalized offers. And according to Statista, 48% of consumers say it’s fine if businesses use their purchase history to create personalized offers. But they want to be able to opt-in and out whenever they want.

So generally people are open to you collecting their data in exchange for personalization. But that doesn’t mean you should take advantage of that. Be transparent about the data you’re collecting and how you’re using it.

The same goes for notifications. Don’t go overboard. If the user has enabled push notifications, that doesn’t mean you should spam them 50 times a day. No matter how personalized the notifications are. People will delete your app in seconds.

Best Examples of Personalized Apps

Many apps are doing a great job when it comes to personalization. And you could learn a lot from them.

Here are some of the best personalized apps:

Spotify

When it comes to personalization, Spotify is leading the game. With their personalized playlists like Daily Mixes, they combine user’s favorite songs with ones they haven’t listened to in a while.

But that’s not all.

In-app messages and notifications alert users when their favorite artist released an album or is playing a show near them.

Their latest feature is a personalized podcast playlist where users can discover new podcasts and follow the ones they like.

Nike Training Club App

Nike Training Club app is another fine example of personalization. It is a fitness app that offers users a personalized workout plan. What’s cool is that the workout plan changes and adjusts according to the progress they make. Users also get tailored guidance that helps them reach their goals. So it’s like they have a fitness trainer with them at all times.

The app also sends personalized tips about nutrition, health, and mindfulness. Those engage users even when they’re not working out.

Instagram

Instagram makes it easy for users to find the content they like in the Explore tab. That content is based on their usage history, which means it’s personalized and engaging.

The content in the newsfeed is also personalized according to what the user likes. And the ads are tailored according to the interests and behavior of the user. So you’re constantly surrounded with content you like and want to engage with.

Instagram alerts you when someone likes your post, starts following your, or your friend posts a Story. All of those notifications are very personalized and relevant to specific users.

To Sum-Up Mobile App Personalization

App customization is no longer enough. Users want personalized content that will make them feel heard and taken care of. That’s why the main goal of your app should be to offer them a personalized user experience. It will make the app more convenient to use and more useful to users. And that will result in more engagement, higher user retention, and an increase in brand loyalty.

What are your thoughts on mobile app personalization? Have some questions about it? Reach out in the comments below!

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About Udonis

In 2018 & 2019, Udonis Inc. served over 14.1 billion ads & acquired over 50 million users for mobile apps & games. We’re recognized as a leading mobile marketing agency by 5 major marketing review firms. We helped over 20 mobile apps & games reach the top charts. Want to know how we make it look so effortless? Meet us to find out.