Category: Onboarding

How User Analytics and Onboarding Can Help Emerging Developers Get Their Fair Share of the $100 Billion Boom in Mobile Spending
Introduction

In a world grappling with economic uncertainties and slowdowns, mobile consumer spending has emerged as a surprising beacon of hope. Despite the ominous signs of a global economic slowdown, the mobile industry has been thriving, hitting a remarkable milestone of $100 billion in early Q3 2023. This phenomenon is a testament to the resilience and adaptability of the mobile ecosystem. For emerging mobile software developers, this presents a golden opportunity to thrive and make their mark in a competitive landscape. However, in order to capitalize on this potential, developers must prioritize effective user analytics, user onboarding, and user engagement tools. In this blog post, we will delve into the impressive figures and explore the reasons behind this remarkable performance in contrast to the broader economic trends. We will also l delve into the significance of these elements and how they can empower emerging developers to not only compete but excel in the mobile spending boom.

The Milestone Achievement

The mobile industry reached a significant milestone early in Q3 2023 when it surpassed $100 billion in consumer spending. This monumental achievement was reported in an article by Business of Apps on September 29th, 2023 (“Mobile Spending Hits $100 Billion Milestone Early in Q3”). While this news might come as a surprise given the global economic slowdown, it paints a fascinating picture of consumer behavior and trends.

Global Economic Slowdown

Before we dive deeper into the mobile spending phenomenon, let’s briefly touch upon the backdrop of the global economic slowdown. An article by Reuters on September 5th, 2023, reported signs of a global economic slowdown, citing data from the August PMIs (“Global Economy: Global Business Activity Showed Signs of Slowdown in August PMIs”). This slowdown, attributed to various factors including supply chain disruptions and the ongoing pandemic, had raised concerns about consumer spending in various sectors.

The Resilience of Mobile Consumer Spending

Mobile consumer spending has proven to be remarkably resilient in the face of these economic challenges. There are several key reasons why the mobile industry has not only weathered the storm but also thrived during this period:

Digital Transformation: The pandemic accelerated the process of digital transformation across industries. With remote work, online education, and e-commerce becoming the norm, consumers increasingly relied on their mobile devices for various activities. This surge in digital dependence naturally led to higher mobile spending on apps, subscriptions, and in-app purchases.

Entertainment and Gaming: Mobile gaming and entertainment apps witnessed a surge in popularity during the pandemic. With more people seeking entertainment options from the safety of their homes, mobile games, streaming platforms, and digital content providers saw a significant increase in user engagement and revenue.

App Monetization: App developers have become more adept at monetizing their offerings through various strategies, including in-app advertising, freemium models, and premium subscriptions. These monetization tactics have contributed to the sustained growth in mobile consumer spending.

Mobile Commerce: E-commerce has experienced a massive shift towards mobile platforms. Consumers now shop for everything from groceries to electronics using mobile apps, contributing to a surge in mobile commerce spending.

Consumer Behavior: The pandemic reshaped consumer behavior, with people increasingly turning to mobile devices for convenience, entertainment, and social interaction. This shift in behavior has become a permanent feature of the post-pandemic world, sustaining mobile spending levels.

Innovation and New Features: Mobile app developers continuously introduce innovative features and improvements, enticing users to spend more on their platforms. The constant evolution of mobile apps keeps consumers engaged and willing to spend.

The Role of In-App Purchases

One significant contributor to the robust mobile spending figures is the prevalence of in-app purchases. Many apps, especially in the gaming and entertainment categories, offer in-game purchases, virtual items, or premium content. These microtransactions add up quickly, encouraging users to spend more within the app ecosystem. The ease of making in-app purchases through mobile devices further drives this trend.

The Role of Analytics and User Onboarding and Product Adoption.

The mobile consumer spending’s remarkable performance in Q3 2023, despite the global economic slowdown, is a testament to the adaptability and resilience of the mobile industry. However for aspiring app developers success hinges on more than just creating a great app; it requires a deep understanding of user behavior, effective onboarding, and ongoing user engagement.
1. Effective User Analytics:
User analytics is the foundation upon which successful mobile apps are built. For emerging developers, understanding their users’ behavior and preferences is crucial for creating apps that resonate and drive mobile spending. Here’s why effective user analytics is paramount:
1. Data-Driven Decision Making: User analytics provides developers with invaluable insights into user behavior, allowing them to make data-driven decisions. It helps in identifying what features users engage with the most, where they drop off, and what drives them to make purchases.
1. Continuous Improvement: With analytics, developers can continually refine their apps based on user feedback and usage patterns. This iterative process leads to a better user experience, increased engagement, and ultimately higher spending.
1. Targeted Marketing: By analyzing user data, developers can segment their audience and create highly targeted marketing campaigns. This ensures that promotional efforts are directed at users who are most likely to make in-app purchases.
1. User Onboarding:
Contextual User onboarding is the first impression users have of an app. It sets the tone for the entire user experience and can greatly influence whether users decide to stick around and spend money within the app. Here’s why user onboarding is vital:
1. First Impressions Matter: A well-designed onboarding process introduces users to the app’s core features and benefits. It helps users understand the app’s value proposition and encourages them to explore further.
1. Reduced Churn: Effective onboarding reduces the likelihood of users abandoning the app shortly after installation. A smooth onboarding experience can significantly decrease user churn rates.
1. Education and Engagement: Onboarding is an opportunity to educate users on how to use the app effectively. It can guide users through key features, prompting them to take actions that lead to spending, such as signing up for an account or making an initial purchase.
1. User Engagement:
User engagement is the lifeblood of mobile apps. Engaged users are more likely to spend money and become loyal customers. Here’s why user engagement tools are indispensable:
1. Retain and Grow: Engaging users with regular updates, personalized recommendations, and interactive features keeps them coming back. Loyal users are more likely to make in-app purchases and spread positive word-of-mouth.
1. In-App Notifications: Well-timed and relevant in-app notifications can encourage users to explore new features, participate in promotions, or complete in-app purchases. User engagement tools help developers deliver these notifications effectively.
1. Personalization: Personalizing the user experience based on user preferences and behavior can lead to higher spending. Engagement tools enable developers to tailor content, recommendations, and offers to individual users.
Conclusion:

The $100Billion mobile spending boom is a remarkable opportunity for emerging mobile software developers to thrive in a competitive market. However, success hinges on more than just creating a great app; it requires a deep understanding of user behavior, effective onboarding, and ongoing user engagement. By harnessing the power of user analytics, onboarding processes, and engagement tools like Contextual, developers can create apps that not only complete but excel in the mobile spending boom. These elements not only drive user satisfaction but also increase the likelihood of users becoming loyal, high-spending customers, ensuring a bright future for emerging developers in the ever-evolving mobile landscape.

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October 19, 2023
Top 10 reasons for using Carousels for Mobile app user onboarding
For mobile app user onboarding carousels used to be a thing but what about now? Carousels (also known as sliders or onboarding screens) were still a common design pattern in mobile app onboarding. They are used to introduce users to the primary features or benefits of an app when it’s first launched. Carousels typically consist of several swipeable screens, each with visuals and text, sometimes accompanied by pagination dots to indicate progress.

However, the usage and effectiveness of carousels in onboarding can vary based on several factors:

Effectiveness: Some studies and anecdotal evidence suggest that not all users swipe through all the screens in a carousel. If the first couple of screens don’t grab their attention, they might skip the rest. Carousels, when used in mobile user onboarding, serve a variety of purposes. Here’s a breakdown of the role they play:
1. Introduce Key Features: One of the primary uses of carousels in onboarding is to give new users a quick overview of the app’s main features. By swiping through a series of screens, users can get a glimpse of what the app can do before they dive in.
1. Simplify Information: Instead of overwhelming a user with a single screen full of information, carousels break down information into bite-sized chunks. Each slide typically focuses on a single feature or benefit, making it easier for the user to digest.
1. Engaging Visuals: Carousels allow for the use of visuals, including illustrations, animations, and screenshots, to complement text. Engaging visuals can make the onboarding experience more enjoyable and memorable.
1. Tutorials and Guidance: Some apps use carousels to guide users through a series of steps or tutorials. For example, an image-editing app might use a carousel to demonstrate how to crop a photo, add a filter, and then save the edited image.
1. Highlight Value Proposition: Apart from just showcasing features, carousels can emphasize the benefits of using the app. This helps users understand the value the app offers, which can be key to retaining them.
1. Flexible Design: Carousels can be designed to match the app’s aesthetic and brand identity. This makes them a versatile tool in the designer’s toolkit, suitable for a range of apps and audiences.
1. Prompts and Calls to Action: Many carousels conclude with a call to action, like signing up, logging in, or diving into the app’s main interface. This prompt can encourage users to take the next step in their journey.
1. Conditional Onboarding: Some advanced carousels might change their content based on user responses. For example, asking a user their primary purpose for downloading an app could tailor the subsequent carousel screens to that specific use-case.
However, while carousels can be useful, they’re not without criticism:

Overuse: Because carousels have become a staple in app design, some users may skip them, thinking they already know how the app works.

Accessibility Issues: Carousels can pose challenges for visually impaired users or those who use screen readers. It’s essential to ensure that carousels are accessible to all users.

Information Overload: If not done well, carousels can still overwhelm users with too much information. It’s crucial to strike a balance between being informative and being concise.

In summary, carousels in mobile user onboarding can be a powerful tool for introducing users to an app’s features and benefits. However, they should be designed with care, ensuring they’re accessible, engaging, and genuinely helpful for the user.

Contextual onboarding and carousels can complement each other when used strategically. While carousels usually offer a generalized introduction, contextual onboarding offers help and guidance based on where the user is within the app and what they are doing. Merging these two can offer a rich, layered onboarding experience. Here’s how they can be used together:
1. Initial Overview with Carousels: Start with a carousel to introduce the app’s primary features and benefits. This gives users a high-level understanding of what to expect.
1. Contextual Tutorials Post-Carousel: Once the user has swiped through the carousel and enters the app, provide contextual tutorials. For instance, if they land on a dashboard for the first time, tooltips or highlight overlays can guide them through the features specific to that page.
1. Progressive Disclosure with Carousels: Instead of showing all the features upfront, use the carousel to introduce basic functionalities. As users dive deeper into advanced features, use contextual onboarding to guide them.
1. Interactive Carousels: After a general carousel introduction, integrate interactive elements. For instance, if introducing a photo-editing tool, the carousel can show the editing feature, and the next step might allow users to try it out on a sample photo within the carousel itself.
1. Adaptive Onboarding: Gauge user interactions during the carousel phase. If a user shows particular interest in one feature (by spending more time on a specific slide or interacting with it), the subsequent contextual prompts can be tailored around that feature.
1. Feedback Loops: After introducing features through the carousel, use contextual onboarding to ask for feedback. For instance, after showing a new feature in the carousel, a contextual prompt can ask, “Would you like a detailed tutorial on this?”
1. Contextual Reminders: If a user skips the carousel or rushes through it, contextual cues can remind or reintroduce those features when the user encounters them within the app.
1. Deep Linking from Carousels: If your carousel touches on advanced features, deep linking can be useful. For instance, a carousel slide introducing a particular function can have a “Learn More” button that, when tapped, takes the user directly to that feature with contextual onboarding ready to guide them.
1. Continual Learning with Carousels: For apps that frequently update and add new features, occasional carousel reintroductions can be beneficial. Once users are familiarized through the carousel, contextual onboarding can take over, offering in-depth guidance on the new features.
1. Personalized Experiences: By analyzing user behavior and preferences, the carousel can be personalized to show the most relevant features to individual users. Following this, contextual cues can further tailor the onboarding based on the user’s interaction with the carousel.
In essence, while carousels set the stage by offering a bird’s-eye view of the app, contextual onboarding goes deep, offering guidance and assistance as users navigate the app. When combined, they offer a holistic onboarding experience that is both informative and user-centric.

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October 5, 2023
What is Contextual Onboarding? and does it make any difference?
Contextual Onboarding is the practice of introducing users to a product via in-app Guides. Adopting this approach Product Managers can make a major improvement in user adoption and retention rates whilst lowering costs.

This strategy helps users overcome any initial confusion or frustration they may have when first using a new product. Contextual onboarding helps users quickly learn to use a product, improving the users experience and increasing user engagement.

Contextual onboarding helps users achieve their goals more efficiently and effectively. It does this by providing the right information to the right user at the right time whilst reducing customer churn rates.

Here 5 key steps to successful Contextual Onboarding :
1. Understand what users need to do to achieve their goals in your product. This could be signing up, creating a profile, or using certain features. This is referred to as “Activation” in popular product adoption frameworks such as Pirate Metrics.
2. Give the right users, the right information and instructions at the right time and place within the app. Use tooltips, pop-ups, or interactive tutorials to help them navigate and complete task.
3. Personalized user onboarding: Customize the onboarding process to fit user preferences, behaviour, or past interactions. By understanding the user and the user journey, you can offer more relevant and focused assistance.
4. Progressive disclosure is a technique that involves gradually introducing features to users as they become more familiar with the product. This approach prevents users from feeling overwhelmed with too much information all at once. It also allows users to learn at their own pace. This helps prevent cognitive overload and allows users to learn at their own pace.
5. Monitor and improve the onboarding process by observing user behaviour and collect user feedback via in-app surveys. Utilize analytics tools to track user engagement, completion rates, and drop-off points. Use this data to enhance the onboarding experience.
By using these strategies, you can create an onboarding experience that will help users learn and use your product or service. As a result, more users will continue to use your product and potentially refer more of their friends and colleagues.

What difference can Contextual Onboarding make? What are the important numbers?
1. Improved Product adoption. Contextual customers have been able to seamlessly onboard thousands of users in a matter of days instead or weeks.
2. Lower onboarding costs. Companies have reported that it costs 5 times less with Contextual Onboarding than using traditional methods. Contextual onboarding makes external services like knowledge bases and their maintenance redundant. Users don’t have to attend online classes and can complete the app onboarding in their own time
3. Increased user retention: Companies using Contextual Onboarding have reported user retention rates of over 80%. Contextual onboarding accelerates Time to Value which ensures that users quickly understand how to use the product to achieve their goals. This reduces the time it takes for users to derive value from the product, leading to increased customer satisfaction and loyalty.
4. Enhanced user satisfaction: Contextual Onboarding helps users achieve their goals more efficiently and effectively. This leads to increased user satisfaction and a better overall experience. This can often lead to increased positive reviews on the App and Play Store.
5. Reduced support costs: Contextual onboarding can help reduce support costs by helping users navigate and use the product confidently. Users who have a clear understanding of how to use a product are less likely to require support or assistance.
These are just a few examples of the benefits that companies can enjoy after implementing contextual onboarding. By providing a seamless and guided onboarding experience, companies can drive user engagement, satisfaction, retention and sustainable growth.

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August 1, 2023
Half of your Mobile App user acquisition costs are wasted, the problem is knowing which half.

We recently looked at a report by Appsflyer that showed the average uninstall rate for Android Apps was 49% in the first month with half of those uninstalled on the first day. The report stated that iOS uninstall tracking is limited after iOS 15 caused background pushes to only be delivered if the app has been used in the foreground in the past few weeks. However it’s probably safe to say that iOS Apps are not immune to similar rates of user churn.

The report made a reference to user onboarding “Clearly, creating a superior onboarding experience through deep linking and well-crafted tutorials is essential” but somehow didn’t include Onboarding in the 9 key takeaways in their report.

When you think about the huge volume of App installs that fall foul to user churn it raises the question, how much development and marketing costs are wasted?. Well almost 50% is the obvious answer but what if you had to put an actual dollar figure on it?

The Business of Apps has very helpfully published a report with exactly that information called App Marketing Costs (2023) and some of the underlying data is supplemented by the same firm as the previous report (Appsflyer).

The report split the App Marketing Costs into three stages Pre-Launch, Launch, and Post-Launch which we will summarise for you here:

Mobile App Pre Launch / Launch Costs

Post Launch costs / cost per App.

When an app is readied for release, the primary marketing costs are: CPI, (Cost-Per-Install), and CPA, (Cost-Per-Action). Both the big app developers and independents set aside a significant portion of their app marketing budget towards acquiring users for their app, and even more towards incentivizing those users to perform specific actions such as registering an account, making an in-app purchase, subscribing to a service, or making a reservation.

Post Launch Costs

Similar to how the earlier reports reference Mobile user Onboarding there is an equally oblique reference to Push Notifications.

When you take these costs into account it’s surprising that Product Teams and Marketers fail to prioritise No Code solutions like Contextual that directly help product growth teams and app developers increase activation and reduce user churn.

For example let’s take a Mobile App that has a growth target of 100,000 monthly active users in one year. Based on industry churn rates the product growth and marketing team need to achieve at least 195,000 installs to hit their MAU target. However, doing it in 12 months is a tough ask! For example from a standing start of 1000 installs per month plateauing at 10,000 per month by month 10 it would take 24 months to reach 100,000 MAU’s provided of course there were no other impediments to growth and retention.

Based on the aforementioned “user Action Costs” of “Advertising cost per install” of $4 and “Install cost” $2 per install the App developer will have spent $1.17m over 24 months not including Pre-launch costs or any other User Action costs to reach the 100,00 MAU target by month 24. However if the Product Team could improve Activation by 19% to 70% of App installs the team would not only hit their MAU target 6 months earlier but will have saved almost $165K in User Action costs being wasted due to User Churn.

The cost of a No Code mobile app onboarding tool like Contextual is a small fraction compared with the software development and customer acquisition costs CPI, (Cost-Per-Install), and CPA, (Cost-Per-Action) hemorrhaging at a rate of 49%. In fact Contextual customers commonly experience greater than 20% improvement in activation and Contextual pays for itself in month 1 and returns between $2.2 to $9.50 for every dollar spent, gradually improving ROI as our customers achieve scale.

ROI aside, the lifetime value gained from the users Contextual helped retain via Mobile app onboarding and In-app Tooltips is an order of magnitude best left to the App Developer to determine.

As for the rest, with Contextual tools and analytics you will at least have a better understanding about why the remaining users are not converting.

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February 22, 2023
Reducing User Churn and Optimizing Mobile User Onboarding: Leveraging Contextual Strategies

Introduction:

Just a few months ago, we reported on a study implying the world’s preference for Android over Apple. However, a new report by Appsflyer suggests that when it comes to application user churn, the results may not be as favorable for Android.

In this article you learn how contextual walkthroughs, user onboarding, and mobile tooltips can help app developers and product managers reduce user churn and improve app retention. Discover the key insights from Appsflyer’s App Uninstall Report, highlighting the uninstall rates for Android apps and the importance of effective onboarding experiences. Explore the benefits of using a digital adoption platform like Contextual to design and launch custom onboarding experiences, tooltips, and feature announcements in real-time, without relying on developer resources.

Understanding User Churn: Insights from the App Uninstall Report:

Appsflyer’s App Uninstall Report reveals that almost half of Android apps (49%) are uninstalled within a month, with 49% of those uninstalls occurring within just one day. Higher uninstall rates are observed in developing markets and the finance app category. To address this challenge, it is crucial to track uninstall rates, understand user behavior, and optimize the app experience.

Leveraging Contextual Strategies for Effective Onboarding:

An effective onboarding experience is crucial to reducing user churn. However, developing such an experience can be resource-intensive. Contextual provides a solution by enabling product managers and marketers to design and launch custom onboarding experiences, tooltips, and feature announcements in real-time, without relying on developers. This empowers app teams to create engaging onboarding journeys and ensure a seamless user experience.

Key Takeaways for App Success:

To drive app success and reduce user churn, it is essential to measure and understand uninstall rates. By utilizing tools like Contextual, product managers and marketers can create targeted onboarding experiences and track feature engagement to gauge effectiveness. A seamless onboarding process is critical, as the highest uninstall rate occurs on the first day. Guiding users towards their “Aha!” moment and personalizing the app experience through contextual tooltips, FAQs, and in-app announcements can enhance user satisfaction and prevent churn. Additionally, tracking user interactions and identifying drop-off points allows for targeted in-app messaging and improvements to the app itself.

Optimizing the User Experience with Contextual:

Contextual’s Automatic Feature Tracking and Custom Tags enable product teams to track user interactions, identify funnel drop-off points, and personalize the app experience. By guiding users towards their desired outcomes and providing targeted tips, tours, in-app videos, and walkthroughs, product teams can improve activation and retention goals, leading to an overall better user experience. Contextual also respects user privacy by not requiring traditional identification methods like email addresses, ensuring user anonymity in the Web3 era.

Make Your App even more awesome with Contextual:

In a highly competitive app landscape, there is no room for mediocrity. Mobile apps must deliver value within minutes or seconds to retain users. Yet, many apps fail to prioritize user engagement features like mobile user onboarding and walkthroughs. With Contextual, you can prioritize these features and enhance your app’s value proposition. Contact us now to discover how Contextual can help you optimize your app and reduce user churn.

Conclusion:

By leveraging contextual walkthroughs, user onboarding, and mobile tooltips, app developers and product managers can reduce user churn and improve app retention. Analyzing the insights from Appsflyer’s App Uninstall Report, it is evident that optimizing the onboarding experience and understanding user behavior are essential for app success. Contextual offers a comprehensive digital adoption platform that empowers app teams to design and launch engaging onboarding experiences without relying on developers. By implementing these strategies and leveraging the power of Contextual, you can create exceptional apps that drive user satisfaction and success.

February 1, 2023