Many businesses spend a lot of time and money trying to attract new users, but the most successful ones know that keeping their existing users happy is the key to long-term success. While bringing in new users is important, keeping the ones you already have leads to steady growth, more profit, and stronger relationships.
Disclaimer: This approach applies to businesses that already have a user base. If you're in the early stages of building a product or service, your main focus should be user acquisition, bringing in users and proving your value. Once you’ve gained traction, retention then becomes a powerful strategy for sustainable growth.
Why Users Retention is Just As Important As Getting New Ones
Getting New Users Takes More Effort
Acquiring new users requires a lot of resources, marketing, sales efforts, and incentives to attract first-time users. This is known as user Acquisition Cost (CAC), which includes the money spent on ads, promotions, and outreach to convince people to try a product. However, focusing on user retention increases CLV, drives repeat business, and reduces the pressure to constantly acquire new users, leading to a more sustainable growth model.
Loyal Users Spend More and Stay Longer
When users trust a brand they become more loyal, translating to higher retention rates, (and in B2C cases) increased purchase frequency, and greater average order value (AOV). Additionally, satisfied users contribute to organic growth through referrals, social proof, and user-generated content (UGC), reducing dependency on paid acquisition channels.
Successful Companies Focus on Keeping users Happy
Top-performing companies that focus on leveraging UX, see a 42% increase in user retention. They integrate user/user experience strategies, omnichannel engagement, and personalised user journeys to keep users engaged. At AIENAI, we implement three core UX strategies to help our clients improve user retention and optimise engagement.
AIENAI'S User Retention Secrets
Fixing Hidden Problems with Service Blueprints
A service blueprint is a detailed framework that visualises a company’s end-to-end service delivery. It maps out the user’s touchpoints, backstage processes, and pain points that impact user experience.
How This Helps:
Identifies and resolves user drop-off points and friction in the user journey.
Aligns cross-functional teams—product, engineering, marketing, and user support, for seamless execution.
Enhances service efficiency, reducing operational inefficiencies that impact retention.
For example, a B2B SaaS company struggling with user churn post-onboarding can use a service blueprint to identify where users face friction, whether it’s in training, data migration, or ongoing support. By improving these areas, they not only retain existing users but also increase referrals and reduce acquisition costs
2. Enhancing Usability with optimised Information Architecture (IA)
Information Architecture (IA) is essential for organising content and navigation in a way that improves findability, accessibility, and usability. A structured IA ensures that users can locate features, products, or support resources without frustration.
How This Helps:
Reduces cognitive load by intuitively presenting just enough information per time.
Increases time on site and user engagement, lowering bounce rates.
Builds user trust by maintaining consistent navigation and content structure.
For example, a B2B HR software company providing talent management solutions can refine its IA to ensure that HR managers and recruiters can easily find key features like reporting, compliance tools, and candidate tracking dashboards, reducing friction and increasing long-term engagement.
3. Driving Iterative Improvements with Prototyping and Usability Testing
Before launching new features, businesses must validate them using techniques like iterative prototyping, usability testing, and A/B testing, as applicable. These examples of data-driven approaches ensure that updates enhance the user experience rather than introducing friction. This in turn reduces the likelihood of users jumping ship to the competition and building stronger loyalty for retention.
How This Helps:
Reduces usability friction by identifying and rectifying potential pain points before deployment.
Increases user satisfaction through continuous product iteration based on real-world insights.
Enhances feature adoption rates, keeping users engaged over time.
For example, a fintech app launching a new budgeting tool can use A/B testing to determine whether users prefer dashboard layouts A or B, refining the experience based on usage data.
Retention is the Growth Lever Most Businesses Ignore
Market leaders understand that sustainable growth isn’t about constantly acquiring new users, it’s about keeping them. A strong retention strategy leads to:
Lower churn rates and higher user loyalty.
Increased user Lifetime Value (CLV) and revenue growth.
A competitive moat that reduces reliance on costly acquisition tactics.
By removing friction points, optimising information architecture, and testing experiences before launching, businesses can create compelling user experiences that foster long-term user relationships.
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