Overview: Retention is not just a side metric, it’s a core driver of app growth. With acquisition costs soaring and privacy changes making it harder to target, apps must prioritise keeping the users they already have. In this webinar hosted by Yodel Mobile by NP Digital and Customer.io, industry experts shared why most apps struggle with churn, what leading brands are doing differently, and how to build a high-performance retention framework for 2025.
Why retention matters more than ever
For years, app marketers have treated acquisition as the main driver of growth. But as Arazoo Kadir, Agency Growth Director at Yodel Mobile, highlighted in her opening remarks, the reality is shifting:
- User acquisition costs are skyrocketing. Platforms like Facebook and TikTok continue to raise prices, making each install more expensive.
- Privacy changes have made targeting harder. With Apple’s ATT framework and Google phasing out third-party cookies, precision targeting has dropped.
- Churn rates are rising. On average, 80% of users churn within 90 days, and 74% abandon onboarding if it takes more than a minute.
In other words, spending big on acquisition without fixing retention is like pouring water into a leaking bucket.
Understanding the cost of churn
Stephen Cooper, Account Manager at Yodel Mobile, stressed that retention must be understood in financial terms. When 8 out of 10 acquired users disappear within three months, the unit economics of app marketing break down.
- Businesses often assume their UA strategy is the problem, but in reality it is poor post install engagement.
- Retention is not just about keeping users active, it is about making acquisition spend sustainable.
He pointed to sector data: whether in gaming, finance, travel, or retail, apps experience massive day one drop-offs. Gaming leads with higher first-day engagement (27%) but still sees near 90% attrition by day 30.
The message: if you do not deliver value immediately, most users will not stick around long enough to matter.
Why apps fail to retain users
Stephen outlined four common reasons apps fail post install:
- Friction in onboarding – long forms, excessive data requests, or unclear value propositions.
- Irrelevant messaging – blasting one size fits all emails and push notifications.
- Missed “moment of delight” – users do not hit their “aha moment” quickly enough.
- Lack of personalisation – treating all users the same, ignoring behavioural differences.
The statistics are sobering:
- 74% of users abandon onboarding if it takes longer than a minute.
- 63% stop using apps if messages are not relevant.
- 72% only engage with personalised messages.
Examples of retention done right
Stephen shared two onboarding examples that demonstrate best practice:
- RHS Grow (gardening app): Instead of overwhelming new users with data fields, RHS Grow immediately showcases its most valuable feature, plant identification. By delivering value instantly, it reduces friction and builds trust.
- Headspace (meditation app): The first screen greets users with a simple breathing exercise, a tangible way to reduce stress right away. The app also frames benefits with context (“10 days of Headspace can increase happiness by 16%”), reinforcing why it is worth sticking around.
Both apps prove the power of showing benefits before features.
Personalisation beyond first names
“Personalisation is more than just adding someone’s first name to an email,” said Naomi West, Product Marketing Manager at Customer.io.
Her advice:
- Build a data dictionary of events and attributes (for example inactivity, feature adoption) that can trigger relevant comms.
- Use dynamic content so users only see messages that match their stage and actions.
- Optimise for time zones – no one wants a push notification at 3am.
Case Study: Les Mills
Facing post pandemic churn, global fitness brand Les Mills launched a churn intervention project:
- Built a predictive model to flag at risk customers.
- Fed the data into Customer.io to trigger personalised, multi-channel campaigns (push, in app, email).
- Outcome: significant cost savings versus acquisition by retaining existing members.
Case Study: Zen.com
The fintech company moved beyond transactional emails by adding push notifications and in-app campaigns. Using location-based offers and behavioural triggers, Zen.com improved activation and long-term engagement.
The takeaway: personalisation is invisible when done right, users just experience a seamless, relevant journey.
Building a retention framework
Naomi outlined a five step framework for high performance retention:
- Map lifecycle stages (onboarding, activation, engagement, extension, win back).
- Define success metrics – for example activation rate, feature adoption, “aha” moments.
- Audit your data with a data dictionary of behaviours and attributes.
- Design cross channel campaigns – coordinate push, in app, email, and SMS.
- Continuously test and optimise – from subject lines to sequencing, keep experimenting.
She also urged marketers to be their own end user: test every message and flow yourself to uncover friction points.
Acquisition and retention: Two sides of the same coin
One audience question sparked a lively discussion: how should acquisition and retention teams work together?
Stephen suggested aligning everyone around a North Star metric – such as monthly recurring revenue or lifetime value. Acquisition data (which audiences convert best) should inform retention strategies, while retention insights (who delivers long term value) should feed back into acquisition targeting.
As Arazoo put it: “Acquisition and retention are not competing priorities, they are part of the same growth engine.”
Key takeaways
- Retention is now the growth lever. With acquisition costs climbing, retention is critical to sustainable economics.
- Onboarding is make or break. Deliver value within the first session.
- Personalisation must be contextual. Move beyond surface level tactics to behavioural and lifecycle triggers.
- Omnichannel beats siloed messaging. Users do not think in channels, they think in experiences.
- Retention is continuous. Ongoing testing and incremental optimisation are the only way forward.
Conclusion & recording
Retention is not glamorous, but it is where app growth is truly won or lost. As this webinar made clear, the apps that will thrive in 2025 are those that master the art of keeping users engaged beyond day one.
As Stephen summed up: “Deliver value as quickly as you can.”
And in Naomi’s words: “Be your end user.”
Do that consistently, and your acquisition spend will finally start paying dividends.
You can watch the full webinar recording below:
To learn more or for assistance with your retention strategy, please get in touch.
