In the current times, ‘Client Acquisition’ (UA) has become one of the most challenging tasks. Marketing is about being extra ‘Contextual’, which means reaching out to the apt customer at the right time, right place, and in the proper situation.
One of the complicated steps in the entire marketing journey had always been to identify the right fit for the relevant product or service. Hence, AI has played an essential role in terms of both user acquisition and retention and will surely continue to help companies further.
Here is how mobile companies can make use of AI for user acquisition and retention:
#1 Search for users most likely to uninstall the segment and revamp the same
The international markets are most likely to sway amid the bullish and bearish components. In the bear segment, a finance company is most likely to use a predictive segmentation engine to assume that at least 100k people will uninstall the feature.
To target the segment one can use AI to design better mobile app user experience. The tool is most likely to adopt the engagement strategy of the company.
#2 Cash in on the likelihood to buy user segment by providing high-end merchandise to enhance profits
After the COVID-19, the international market started to gain momentum. For example, a travel company considers improving the profit margins from an app. The firm needs to target one of the most valuable patrons based on the likelihood of purchase or customer lifetime value.
The segment mainly features patrons who are most likely to make a big purchase shortly.
The algorithm primarily helps in analysing the behaviour of the users to know if they are likely to buy in the coming months.
Keeping this in mind, one needs to build an app that will send a notification to users showing the exclusive travel dashboards that are designed primarily as per the patron’s choice.
#3 Customization to the best level
When the users open the app, they can land on a customized red-carpet version designed as per their choice. The engagement doesn’t end here as the client needs to book an air ticket; he is most likely to receive some push notifications.
The company can increase the profit margins by aligning with the correct user segment with its unique products. Also, there is no compulsion as such to offer any discounted products under this segment. One can save customer’s acquisition costs by retaining loyal ones. The market mainly optimizes the marketing spend by ensuring that the money is spent only on the clients that would make the purchase.
#4 The significant apps that help enhance customer retention
One of the significant challenges for marketers is segmentation. But the best part is that AI can improve customer experience. Ideally, all the clients are unique, and so are their needs. One needs to understand what drives the clients and build the action based on the previous customer buying process. Hence, AI can help see what the customers prefer and what they would like to buy in the future.
Companies are making use of this AI information to their benefit. For example, companies like Northface use AI to create an interface that changes as per the clients’ needs. It considers asking the users for the weather conditions or the activity and offers products based on the terrain they are likely to go.
Also, beauty brands like Sephora and others, use AI to suggest clients’ products based on their skin type.
#5 AI and machine learning can help engage and retain clients
AI-powered tools can help organizations motivate clients at almost all stages in the customer’s life cycle to take the desired action plan. For instance, when a client is on board first, they can send them in-app notifications with unique offers or feature suggestions.
Thus, one needs to know about the specific details of AI that most companies with active clients are likely to use and some of the remarkable ways AI would improve user engagement.
#6 One can use AI to strengthen the marketing strategies
One of the most crucial elements amid recent marketing campaigns is customization. For example, Airbnb search is powered by models that use AI and analyses several different user signals in real-time to get back to customized listings.
The users are aligned with both hosts and listings that are most likely to be compatible, and also, the customers will go through favourable experiences. Customers can get what they are looking for with AI, so they don’t have a chance to complain about the brand, which claims a good reputation about the company.
What to focus on to improve retention?
The above mentioned points are the ways which explain the use of AI by mobile companies to gain customers and retain users.
Now we will focus on the things that should be kept in mind to improve retention. Improving retention does not only mean to strategize your brand in a way that attracts customers. It also means to understand your customer’s reason behind their dissatisfaction.
To do that you need to use email to get a better understanding of why every single user left. What is the main issue, is it any technical issue, pricing or the design issue? Then you can tailor the emails based on the customer’s particular reason to get them to come back.
This method is more impactful as it gives a personal touch and shows the concern of the developer.
One of the known means to deal with churn rate is remarketing. The numbers demonstrate over and over that application remarketing is a surefire approach to improve low rates and increase revenue and benefit (especially when the expense of user acquisition is on the rise and is more costly than remarketing).
As per the data in the graph, we can observe that remarketing goes far when it is compared with long retention and a stunning 85% upliftment in week 12 retention rates among applications that do run remarketing campaigns vs. applications that don’t.
AI is undoubtedly considered to be the future of customer engagements.Improved AI and machine learning will undoubtedly provide marketers with deep insights into the overall user behaviour.
The better the AI gets, the more customized and personalized marketing will become. Deep learning and pattern recognition will grant marketers to plan and design effective campaigns and pinpoint user necessities. Virtual assistants will soon become the new norm and change how customer service systems work with the ability to give precise solutions dependent on an immense range of information.
It is changing the manner in which brands and users connect and interact with one another, and it will keep on forming this dynamic.