Among new users of food delivery apps, 86% will stop using an app within two weeks of the first launch, a new report from CleverTap shows.
CleverTap’s Industry Benchmarks for Food Delivery Apps report, analyses over three billion messages delivered across on-demand food delivery apps worldwide.
While mobile apps currently account for three out of every five digital restaurant orders, individual food delivery apps face significant challenges when it comes to engaging with and retaining new users.
Findings show that only 25% of users complete the signup process after the first app launch.
Only 22% of new users remain active after the first week, and 54% of new users will completely uninstall the app within the first month.
“The food delivery market space is booming thanks to the convenience it offers in today’s busy lifestyle. At the same time, however, the competition is getting more fierce,” said Almitra Karnik, global head of marketing at CleverTap.
Karnik said the food delivery app space has very low entry and exit barriers and hence churn and retention are constant challenges. The key to improve both, is to provide a differentiated experience at every stage of the user lifecycle.
“Showing enough value to get a user to sign up is only the first challenge,” Karnik said. “You also need to incentiviSe users to use the app and perform repeat transactions ‘in-the-moment.'”
Karnik said that with this report, marketers will know more about how their apps are measuring up to the competition and understand how they can rise above the competition.
The report provides data-backed actionable recommendations for confronting these challenges.
In addition to best practices for driving engagement and winning customer loyalty, it offers tips on how to improve click-through rates using specific emojis.