Mobile analytics vendor Flurry has updated its Mobile Apps: Money, Models and Loyalty report that was first published three years ago. Since that time, average 90-day retention rates for mobile apps have climbed from 25 percent to 35 percent. However, the average frequency of use has declined from 6.7 times per week to 3.7 times per week.
The report breaks categories of mobile apps into quadrants based on their retention and frequency of use. Quadrant I apps include news and communication apps which “are used intensively and to which users remain loyal over time.” Quadrant II apps, like social games and dating apps, “are used intensively, for finite periods of time.” Quadrant III apps include personalization apps and other apps “that are used infrequently and have high churn.” And Quadrant IV has apps that are “used infrequently, but deliver high value when used,” such as hotel or rental car booking apps. Flurry recommends that developers rely on subscriptions or ad support for apps in quadrants I and IV, but they recommend download fees for quadrants II and III. In-app purchases are likely to be successful with quadrants II and IV.