Nowadays, you can no longer rely exclusively on organic retention. Without any retargeting efforts, merely 5% of installers come back to your food delivery/QSR app on their own. This directly translates to a staggering 95% of installers becoming churners. Out of that massive collective are users who could have been payers and payers who could have been repeat customers — all left untapped without re-engagement methods.
For 2023, we have found that an average of 79% make their first purchase the same day of install. However, as seen in the graph, a rapid descent happens immediately after day 0 on the first order. From best to worst performing apps, users are observed to order less and less within 7 days post install.
On the bright side, it shows that there’s clear intent from first time converters to make a purchase immediately once they install the app. Retargeting new installers as early as day 0 can encourage these high-intent users to convert and keep the purchasing momentum going while it’s strong and fresh. Marketers could capitalize on this by measuring incremental ROAS— the most useful tool to measure re-engagement success. When measuring incremental ROAS, marketers are able to prove for certain that retargeting is not cannibalizing organic performance and get the clearest picture of campaign performance.
On a positive note, over half of food delivery and QSR users are still engaged even if they are not actively spending in the app. Capture their attention through app re-engagement best practices and techniques.
By offering in-app exclusive rewards, you can convert passive users to active and loyal patrons. More and more QSR and food delivery apps are offering points systems that could reward users with freebies and discounts.
Promotions are a proven and timeless marketing strategy to generate more sales and meet KPIs, either online or in-store. Recurrent special benefits, such as free delivery, early access, daily deals, and more, will sustain and keep your customers long-term.
Payers are the most important clientele for any app: they are the ones driving in-app revenue. However, a majority of food delivery and QSR users only make one order during a period of 7 days, and the majority make it on day 1.
Re-engagement strategies can entice them to stay and make more purchases: activate new users after they’ve made their first purchase with special offers and dedicated creatives. By setting up tracking events on sign-ups and first orders, you can offer discount codes or special promotions at the right moment through push notifications, e-mailing or even retargeting campaigns. Such actions will ensure these new users keep coming back.
Meanwhile, leveraging re-engagement strategies to upsell existing users could generate 37% more revenue events in the first 30 days versus new user acquisition, according to Adjust.
We have observed that users who’ve already made a purchase are highly likely to make a second one and eventually become repeat payers.
Our study found that it takes an average 3.2 days for a user to make their second purchase, 2.3 days from the second purchase to the third, then 1.7 days from the third to the fourth. The purchasing behavior is there — and smart retargeting can accelerate this trajectory further to close the gap between orders. Through focusing on payers, marketers can use incrementality to measure increase in purchases over time.
Pun unintended, this leaves us asking you then— would you like to stay where you are or would you like to take your food delivery/QSR app to new heights? Take out a new mindset with the most efficient solution to all these findings: app re-engagement via churn prediction and retargeting.
Use machine learning models to evaluate your audience for churn probability, and apply learnings to remarketing campaigns. For example, if churn prediction algorithms notice that users are dropping off at a certain moment in the user journey, sending these users push notifications for a free dessert if they order lunch today or some other targeted, relevant messaging can keep them engaged. Our churn prediction technology can determine which users are leaving the app and when, allowing marketers to create audience segments for smarter remarketing.
Armed with these insights from churn prediction algorithms, marketers can build retargeting campaigns to keep payers engaged and spending. For example, marketers can design clever creatives featuring users’ last order and suggestions for new ones. Through audience segmentation by purchase history, you can remind your users about their favorite dish and entice them to hit order again.
Whether it’s via churn prediction or retargeting, leave it to the experts at Adikteev to help you discover your app’s fullest potential. Connect with us and get started on your re-engagement journey.