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www.c levert a p.

c o m

Industry
Benchmarks
for Travel Apps
From User Acquisition to Retention

Compare your app’s performance to


industry benchmarks and use our
data-backed recommendations to
drive revenue growth
Executive
One of the biggest challenges mobile
marketers face is measuring performance and
results. Are you paying too much to acquire

Summary new users? What’s a good click-through rate?


How do your churn numbers compare to
competitors?

In a world with so many things vying for your


audience’s attention, how can travel apps
keep users engaged across the app lifecycle
Observe — from onboarding to repeat buying? What is
what makes industr y- leading
the ideal way to hold users’ attention at each
apps successful phase, and what is the window of
opportunity?

This new data report provides essential


Compare benchmarks for travel apps based on more
than 55 billion events performed on over 1
your app to global leaders
for various metrics billion devices.

Armed with the latest data, you’ll be able to


benchmark your app’s performance as well as
Learn get a deeper understanding of the current
state of the travel app industry — and where
the red flags for various stages
of the user lifec ycle it’s headed.

With this report, you’ll:

Grow Get a complete picture of how your app


with data - driven recommendations
for improving user engagement
stacks up against your peers.

Spot red flags to improve your performance


at every stage of the user lifecycle.

Get data-backed recommendations from


our mobile marketing experts to optimize
your user engagement and mobile growth
strategies.

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Table of Contents
Introduction: How to Make the Most of This Report 4
- The Current State of the Travel App Industry
- Monitoring the Metrics that Matter

User Onboarding Benchmarks 6


- Opt-In Rates
- Time to First Login
- Additional Metrics to Watch
- Recommendations: How to Improve User Onboarding

From Onboarding to Engagement: Benchmarks & #CleverTips 9

User Engagement Benchmarks 10


- Click-Through Rates
- Cart Abandonment Rates
- Additional Metrics to Watch
- Recommendations: How to Boost User Engagement

From Engagement to Retention: Benchmarks & #CleverTips 13

User Retention Benchmarks 14


- Stickiness
- Retention Rates
- Additional Metrics to Watch
- Recommendations: How to Increase User Retention

From Inactive to Churned: Benchmarks & #CleverTips 17

User Reinstall Benchmarks 18


- Uninstall Rates
- Reinstall Rates
- Additional Metrics to Watch
- Recommendations: How to Drive User Reinstalls

About CleverTap 21

Additional Resources & Methodology 22

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The Current State of the
Travel App Industry

The online travel sector is seeing massive growth, expected to be


worth over $1 billion by 2022.¹ With a plethora of mobile apps
available to increasingly tech-savvy users, mobile travel bookings
skyrocketed by over 230% between 2015 and 2016 alone.²

But with so much opportunity comes a lot of competition. Over 5% of


all apps are travel apps,³ creating an incredibly aggressive
marketplace. Rising above the crowd to attract and retain users is a
major challenge — which is why mobile marketers must deliver
engaging user experiences that drive user loyalty.

So what makes the top performing travel apps so e° ective? Our data
science team analyzed over 55 billion events performed on more
than 1 billion devices in 2018 to understand what makes the
fastest-growing travel apps succeed.

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Monitoring the
Metrics that Matter

Comparing Essential Metrics Monitoring Metrics Across


against Industry Benchmarks and Between Lifecycle Stages

s
ip
erT
ev
Leveraging Data-driven Recommendations Cl
#
to match Industry Standards

The competitive landscape for mobile apps changes constantly, making it critical
for marketers to benchmark their performance and growth against industry
standards. This report covers all the metrics that matter to help you get a complete
picture of how your app stacks up against peers and competitors.

In order to hook users on your app, you must create engaging experiences at every
stage of the user lifecycle — from acquisition to advocacy. Use this report to
monitor the key metrics at each stage and understand industry standards for each
KPI. You’ll also get insights into how many users typically advance to each stage,
and in how long, to optimize your app’s funnel.

Throughout this report, watch out for our data-backed #CleverTips to help you
engage and delight customers at each stage and grow your app’s revenue.

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ONBOARDING ENGAGEMENT RETENTION REINSTALLS

User Onboarding
Benchmarks

First impressions matter.

With the sheer number of travel apps available to


users, app-based travel businesses have their
work cut out for them when it comes to attracting
and retaining users. And it’s not easy: the average
travel app loses 64% of users after just 30 days.
That number climbs to 76% after 60 days, and to
82% by 90 days.˛

That’s what makes user onboarding so important.


A perfect first-time user experience is the first step
in building a strong connection with new users. Do
onboarding right and you’re laying the groundwork
for a lasting user relationship.

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Opt-in Rates: Time to First Log In:
Opt-in rates signify the percentage of How long does it take for a new user
users who have given you the to register and log in to your app?
permission to reach out to them via Time to first log in is a good indicator
various channels like in-app, push, of the value a new user sees in your
email, SMS, etc. app.

Industry Industry
Benchmark Benchmark

63%
O P T- I N
18 MINS
AV E R AG E
R AT E S TIME
of First-Time Users New Users take to
for Marketing Campaigns Log Into the App

#CleverTips #CleverTips

To Improve Opt-in Rates: To Decrease Time to First Log In:

Welcome your new users with a Welcome users with email drips that
personalized in-app message on their guarantee a response
first launch A/B test the creatives on your in-app
Promote opt-ins by conveying the value and email welcome messages
notifications can provide to users Use social logins to reduce
Understand when users are most time-to-value and get detailed profile
active in your app to engage them at information
the right time

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Additional Metrics to Watch:
METRIC DESCRIPTION

Average App Load The average time it takes for your app to launch or
(Launch) Time load on a user’s device

Average Cost Per User The average cost you incur in getting a user to
Registration install and register on your app

Crash Rate The percentage of app loads that result in a crash

Recommendations:
How to Improve User Onboarding
Use these tactics to improve your onboarding for di° erent types of user segments.

USER SEGMENT TACTICS

Send personalized push notifications, emails, or SMS


encouraging users to make their first in-app purchase
on days 1, 3, 5, 10, and 15 after registration

Provide further incentive by o° ering discounts and


Registered but Not referral codes
Converted Users
Send in-app notifications prompting users who are
browsing to make their first purchase

Send personalized push notifications reminding users


who abandoned carts to complete their first transaction
on days 1, 3, 5, and 10 since their last recorded activity

Registered and Send personalized push notifications, emails or SMS


Converted Users encouraging users to make another purchase on days 7,
15, and 25 after their first transaction

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ONBOARDING ENGAGEMENT RETENTION REINSTALLS

From Onboarding
to Engagement
Onboarded users who quickly experience your app’s
value are more likely to stay engaged and maintain
long-term brand loyalty. Give your users exactly
what they need by personalizing onboarding
flows for di° erent user segments based on
behavior, demographics, or acquisition
channel/campaign.

Industry #CleverTips
Benchmark
To Drive Users to Engagement:

80%
Send o° ers and coupons to first-time users
via SMS
Use geolocation to send personalized
recommendations based on region,
of
uu ss ee rr ss language, timezone
perform a search and move to the Provide a seamless experience by using
engagement stage within deep links to take users directly to the
booking page

44 Mins

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ONBOARDING ENGAGEMENT RETENTION REINSTALLS

User Engagement
Benchmarks

Acquiring and activating new users is only the


first step. Keeping those users engaged with
your app is essential to your long-term success.

Provide a personalized user experience to


nurture customer relationships and drive higher
brand recall. Messages and promotions based
on user actions make for an impressive user
experience. That’s what keeps users active and
profitable over the long term.

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Click-Through Rates: Cart Abandonment Rates:
Click-through rates (CTRs) help How many users dropped o° a fter
measure the e° ectiveness of your showing high purchase intent? Avoid
marketing campaigns. Are your the common pitfalls of abandoned
messages generating the response carts and lost opportunities.
you intended? Are they prompting
users to open your app?

Industry Industry
Benchmark Benchmark

8.32%AV E R AG E
78.6%
BOOKING
C L I C K-T H R O U G H R AT E S A B A N D O N M E N T R AT E S
for Marketing Campaigns for Users Showing Purchase Intent

#CleverTips #CleverTips
To Increase CTRs: To Reduce Cart Abandonment:

Find the optimal time of the day to Analyze the di° erent paths users take
engage with users; CTRs are higher on inside your app to find and resolve
messages sent between 8 - 11 pm friction points
Make your user feel valued and Establish the golden window of
appreciated by personalizing messages opportunity to engage and bring back
based on purchase/search history, dropped o° u sers
location, etc. Engage users in real time; Send
Use a custom alert sound for your compelling personalized messages to
messages to reinforce brand recall bring back users who have dropped o°

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Additional Metrics to Watch:
METRIC DESCRIPTION

Average Session Length The amount of time that a user spends in your app
during each of their sessions

Recommendations:
How to Boost User Engagement
Try these tactics to improve your app engagement and monetization for di° erent
user segments.

USER SEGMENT TACTICS

Use in-app notifications, emails, and/or SMS to confirm


and thank a user for a first-time in-app purchase,
including relevant ticket or booking details, within 5
minutes of the transaction
First-Time Converted
Users: Use in-app notifications or emails to open up
Users who have completed a convenient cross-selling or product bundling
key in-app action for the very opportunities. For instance, pitch location-specific
first time, such as booking a rental car and hotel options to a user who has booked a
flight or hotel flight

Run personalized push notification or email campaigns


on days 1, 3, 5, and 7 after trip completion, seeking
feedback about the app, travel experience, or
accommodations

Run personalized push notifications or email campaigns


encouraging repeat users to sign up for your loyalty
program

Repeat Converted Users: Use push notifications or SMS to provide relevant travel
Users who have completed or location-specific updates, reminders, and information
multiple in-app transactions 2 days before the trip and on the actual travel day

Run personalized push notifications or email campaigns


on days 1, 3, 5, and 7 after trip completion, seeking
feedback about the app, travel experience, or
accommodations

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ONBOARDING ENGAGEMENT RETENTION REINSTALLS

From Engagement
to Retention
Your growth from acquiring new users isn’t
permanent until those users are converted into
retained users. Engage with users who are
well-versed with your app’s o° erings, build a
connection with them, and turn them into
long-term customers.

Industry #CleverTips
Benchmark
To Drive Users to Retention:

63%
Learn user preferences and interests using
psychographic segmentation.
Understand the popular categories that
drive conversions and promote them.
of
uu ss ee rr ss Focus on users with the highest chance of
convert in the app and being retained by creating and nurturing
move to the retention stage within your ‘potential loyalist’ user segment.

1 week

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ONBOARDING ENAGAGEMENT RETENTION REINSTALLS

User Retention
Benchmarks

A 10% bump in user retention can increase the


value of your business by more than 30%.˙

Marketing, advertising, and direct sales can


bring users to your app. But a good product plus
an e° ective user retention strategy is what
keeps users engaged, active, and profitable.

You can’t a° ord to lose hard-won users you’ve


invested time, energy, and money in converting.
By keeping a close eye on your metrics and
identifying early signs of churn, you can
proactively engage these users to reduce
uninstalls.

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App Stickiness: Retention Rates:
“Stickiness” measures how much Retention rate is the percentage of
users are engaging with a product or users who stay with the app over a
feature. The closer your stickiness certain period of time.
quotient is to 1, the more frequently
your monthly active users are return-
ing to your app.

Industry Industry
Benchmark Benchmark

27.4%
AV E R AG E
48.3%AV E R AG E
STICKINESS R E T E N T I O N R AT E
Observed on Retained Users 30 Days after User is Acquired

#CleverTips #CleverTips
to Increase App Stickiness: to Increase Retention Rates:

Create user segments based on in-app Monitor trends for DAUs, WAUs, and
behavior to track activity and identify MAUs.
the percent of users about to turn Use cohort analysis to compare how
inactive di° erent user groups behave over time
Create automated campaigns to and identify your most successful
engage users who are about to slip customers.
away Use omni-channel campaigns to reach
Tell inactive users you miss them and users on the right channel at the right
inform them of new features via time.
personalized emails

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Additional Metrics to Watch:
METRIC DESCRIPTION

Average Session The time between two consecutive user sessions.


Frequency

Average Time in App (per The time a user stays active on your app
session)

Recommendations:
How to Boost User Retention
Use these strategies to improve your user retention for di° erent types of user
segments.

USER SEGMENT TACTICS

Run personalized push notification or email campaigns


seeking feedback about the app, mode of travel, or
Engaged but Not Loyal place of accommodation on days 1, 3, 5, and 7 since the
Users: user’s last travel experience
Users who have converted
multiple times, but infrequently Run personalized “We miss you” push notification or
email campaigns on days 3, 5, 10, 17, and 30 since the
user’s last travel experience pitching fresh o° ers

Run personalized push notification or email campaigns


encouraging such users to sign up for your loyalty
program on days 10, 17, 21, and 28 since the user’s last
completed travel experience
Engaged and Loyal
Users: Use in-app notifications to secure app ratings and/or
Users who frequently complete reviews after users have made at least 5 bookings on
multiple in-app activities your app

Send personalized push notification or email


engagement campaigns updating users who have
signed up for your loyalty program on the number of
points or miles accrued, achievements unlocked, etc.
every 30 days

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ONBOARDING ENGAGEMENT RETENTION REINSTALLS

Churn
Users you’ve nurtured over time should be
monitored closely to ensure that they don’t
churn. Identify early signs of potential
uninstalls to proactively engage with users
to reduce the chances of the user turning
inactive.

Industry #CleverTips
Benchmark
To Prevent Churn:

35%
Understand what most of your users do
right before they uninstall your app
Use search history to send price drop alerts
to users who are about to churn
of
uu ss ee rr ss
Remind users of unexplored features or
benefits of your app
Churn in

2 weeks

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ONBOARDING ENAGAGEMENT RETENTION REINSTALLS

User Reinstall
Benchmarks

Winning back a lost user isn’t easy — but it is


possible. Fortunately, mobile marketers have the
data they need to win back inactive or lost
customers.

Even after uninstall, you can apply user-level


insights for more e° ective campaigns on every
channel. With personalization, you can make a
compelling case for users to either become
active again or share why they’re no longer
interested in your app.

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Uninstall Rate: Reinstall Rates:
Even the most successful apps see Reinstall rates help you measure the
some users churn. By monitoring e° ectiveness and ROI of your
uninstall rates, you’ll have a better remarketing campaigns.
understanding of your user
experience and what leads to
uninstalls.

Industry Industry
Benchmark Benchmark

42.5%
AV E R AG E
57.6%
AV E R AG E
U N I N S TA L L R AT E R E I N S TA L L R AT E S
Within 30 Days of App Install One Month After Uninstalling the App

#CleverTips #CleverTips
To Reduce Uninstalls: To Increase Reinstalls:

Send emails or surveys to uninstalled Use remarketing campaigns on social


users platforms to connect with uninstalled
Avoid notification fatigue by limiting the users and show value based on their
number of notifications sent over a past preferences
period of time Drive brand recall by sending periodic
Find out whether your notifications are product update emails
driving conversions or uninstalls using Use attribution tracking to track
control groups and campaign ROI reinstalls and double down on the most
reporting e° ective channels

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Additional Metrics to Watch:
METRIC DESCRIPTION

Cost of User The cost you incur in reacquiring an uninstalled user


Reacquisition

Recommendations:
How to Drive Reinstalls
Use these tips to encourage app reinstalls for inactive and churned users:

USER SEGMENT TACTICS

Converted but Disengaging Run personalized push notification or drip email


Users: campaigns o° ering steep discounts and rewards to
Users who have purchased on encourage purchases on days 14, 21, 28, and 42 as you
your app previously but are see user activity drop o°
launching and/or using your app
less frequently Run a “We miss you” push notification or email
campaign to encourage such users to relaunch your
app

Run a personalized email campaign on days 1, 5, 10, and


17 post uninstall asking for user feedback to understand
why they uninstalled
Uninstalled Users:
Users who have uninstalled your Run a “We miss you” or “Here’s what you’re missing”
app email campaign on days 7, 14, 28, and 42 post uninstall
highlighting the latest o° ers, location-specific deals,
and new features.

Run a ’We’re just a click away” sign-o° e mail 45-50


days after app uninstall

Re-acquired Users: Run a personalized “Welcome back” in-app campaign


Users who have chosen to on first app launch after reinstall
reinstall your app

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We help consumer brands
retain their users for life.

A Complete Mobile Marketing Suite


for Travel & Transportation Brands
Understand Your Users and Their Preferences
Use Server APIs to import data profiles or events from any source, or export
CleverTap data into your CRM. Trigger separate workflows via webhooks when a
user undertakes a critical event, such as booking a flight, hotel room, or finalizing a
car rental.

Correlate Data Across Multiple Touch Points Using Powerful APIs


With CleverTap, you can not only create granular reports for product adoption and
campaign results, but also build a consolidated dashboard that shows how these
initiatives influence customer purchases and ROI.

Get a Real-time View of Your Business With Customized Reports


Monitor what’s happening in your app at this very instant. Define segment criteria
such as users who have saved a hotel booking but haven’t made the purchase
within 20 mins. Track and engage users within this window of opportunity.

Drive Business Growth with Live-User Segments


Track user activity to build out detailed user profiles based on your users’ browsing
behavior, favorite destinations, travel frequency, preferred airlines, time of travel,
meal types, modes of payment, and choice of accommodation.

Talk to our Mobile Marketing Experts today!


GET IN TOUCH

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Additional Resources:
Must-Have Push Notifications for Travel Apps (Whitepaper)
4 Travel App Awareness and Acquisition Strategies for a Smooth Sail (Blog)
6 Hacks to Get User Onboarding on Track for Your Travel App (Blog)
How Travel Apps Like Expedia Can Better Monetize Their Apps (Slideshare)

Methodology:
Our data science team analyzed billions of anonymous data points across multiple
global travel apps in the first half of 2018. We did a deep-dive into user behavior
inside the app, reactions to engagement campaigns, and conversions to
understand the key factors that contribute to growth. Over 55 billion user actions
across 1 billion devices were studied for this report.

For questions regarding methodology, please contact marketing@clevertap.com.

Sunnyvale | San Francisco | New York | London | Mumbai | Bangalore

clevertap.com | info@clevertap.com

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