Localytics, an app engagement platform, launched Predictions, which claims to “leverage machine learning to help companies predict and influence users at every stage of the app lifecycle”.
The product brings together analytics and marketing to help organisations understand user behaviour and identify meaningful customer segments, and then use those insights to create personalised experiences to engage users.
The company believes that since 25 per cent of apps are only used once and user churn rates increase to 75 per cent over a three-month period, app developers need “strategies to mitigate churn, interact with users more intelligently, drive conversions and, ultimately, increase customer loyalty”.
“Apps are inherently personal, but incorporating predictive intelligence into user engagement gives organisations an opportunity to make them even more personal,” stated Raj Aggarwal, CEO of Localytics.
Localytics Predictions uses auto-segmentation of users to help companies determine which users have a high, medium or low likelihood to churn or convert. It does this based on an algorithm that links users to the behaviours and characteristics most related to churn or conversion.
Auto-segmentation gives marketers instant insight into users’ future behaviours, without the time and guesswork involved in data modelling and analysis, the company said.
Predictions is part of Localytics’ platform, which means customers can take action on insights through personalised email, push notifications, in-app messaging and remarketing campaigns.
Writing in a blog titled ‘Retention is every app publisher’s game to lose’, director of product management at Localytics, Zac Aghion, said encouraging users “to ‘snackify’ their experience” across shorter, more frequent intervals will become critical for large publishers earning revenue through ads, in-app purchases, or both. As for the long-tail of smaller app publishers, high engagement will likely have a positive effect on discoverability in the app stores.
He explained that instead of nudging already churned users to re-engage, data-savvy marketers should use predictive behavioural analytics to intervene with users just before they churn in a meaningful and targeted way, and put them back on “a path to loyalty”.
The predictions will also help marketers identify their most loyal users early on and engage them to take actions that drive user growth, such as inviting friends to the app, leaving ratings in the app stores, or completing a survey.
For users that do churn, a predictive approach will give marketers the information they need to optimise spend by retargeting churned users with the greatest “win-back potential” rather than indiscriminately spending the same amount to re-acquire users regardless of their expected residual value (click image to enlarge).
“In addition to the time savings, the bottom line results are big. Even a small reduction in churn translates to thousands of dollars in savings for an app,” the company said.
In the future, Localytics wants the tool to expand beyond churn and conversion use cases into other applications, “including upsells, on-boarding and content personalisation”.
Last month, Localytics announced its new “remarketing” product, which enables app advertisers to reach users even when they are not using an app, with personalised advertisements on Facebook and other ad platforms.
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