June 20, 2023
min read
Artificial Intelligence

How AI is Revolutionizing App Engagement: The State of App Engagement in 2023

As the mobile app industry continues to grow at a breakneck pace, there has been a significant shift in user behavior. Today's users demand personalized experiences, faster response times, and better performance. Unfortunately, this has made it difficult for app developers to engage and retain users over the long term. In addition, the arrival of Artificial Intelligence has revolutionized how app developers engage users.

By leveraging AI technologies such as predictive analytics, natural language processing, and machine learning, app developers can use these powerful insights to get new users and create highly engaging experiences. This technological renaissance has led to a paradigm shift in how businesses approach app engagement. With the help of an AI marketing tool, companies take their time personalizing the app experience for each user.

In this blog post, we will explore the state of app engagement in 2023 and how AI is transforming the landscape of mobile app engagement strategies for the future.

What is Mobile App Engagement?

The consensus with technology is that it makes things better. While this is primarily true, mobile apps tend to have some of the biggest churn rates in the industry. No matter what anyone tells you, the lack of engagement and the app churn rate is the biggest pain points for mobile app developers. To ensure this point hits home, we'll also mention that nearly 49% of mobile apps are uninstalled within 30 days of the user downloading them. 

These statistics get you thinking: What drives user engagement in mobile apps? Why is engaging and keeping users engaged over the long term so hard? The answer lies in mobile app engagement.

App engagement refers to the level of interaction between a user and a mobile app; engagement is creating experiences that increase the user’s loyalty to a product or service. Interactions can take many forms, from in-app purchases to app downloads, usage time, and social media shares. It measures how many users interact with the app and their engagement with its features. 

Experienced app developers will tell you that driving engagement is cultivating an optimal user experience by staying open-minded and paying attention to your users' words. Not just what they're saying, though - but what they are doing and not doing when using your app. Tracking app engagement metrics is difficult if you're doing it manually. That's why developers are building AI into their apps to improve engagement.

Exploring The State of App Engagement in 2023

In 2023, app engagement has evolved significantly. Companies employ AI algorithms to create more targeted and contextually-relevant app experiences as users demand more personalization. Naturally, this innovation increasing app engagement has increased app engagement and usage time, making users more likely to return to useful and engaging apps. According to marketing experts, the value of AI in marketing will exceed $35 billion by next year.

Four years later, in 2028, insiders expect this marketing area to triple in value, with AI-driven marketing campaigns being seen as the preferred way for businesses to engage users. This trend is further supported by the fact that AI can process vast amounts of data and identify patterns to help companies incentivize users to personalize their app experience.

AI is now used to understand user behavior, create segmented audiences, and optimize content for better engagement across user sessions. App developers also leverage AI to develop virtual assistants that help users with their requests. This is just the tip of the iceberg, though, and there's a long list of ways AI transforms app engagement.

How AI is Transforming App Engagement

AI has come a long way in more than a decade, and its impact is evident in the app industry. AI-powered tools can create highly customized user experiences, boost customer engagement, streamline operations, and more. These AI innovations may not move mountains individually, but they can transform how daily active users engage with mobile apps.

AI plays a significant role in improving user experience, particularly in personalization. Personalization measures such as user segmentation and targeted recommendations allow developers to tailor the app experience for each user. App developers could manually gather data and find the patterns needed to gain insights into user behavior patterns, provide personalized content, and improve overall user engagement strategy.

But when you combine AI with big data, it can automate the process and provide more accurate and consistent insights. Developers can mine valuable data and use those insights to create specially tailored experiences. As a result, companies can offer more engaging app experiences through AI-powered analytics and predictive algorithms, leading to greater customer satisfaction and loyalty.

Here are a few ways AI is transforming the app industry:

  • Predictive analytics - Predictive analytics is a technique that uses AI to predict when an app’s performance may begin to suffer. This helps prevent the need for manual performance optimization, allowing developers to maintain and optimize an app’s performance proactively.
  • Natural language processing - NLP uses AI to process and interpret natural language. This technology can create intelligent assistants that understand human language and create more natural interactions between apps and users.
  • Contextual recommendations - AI can deliver personalized, contextual recommendations to users with brand language optimization. This can range from providing tailored content in an app to suggesting products similar to those they have already purchased.

AI will only become more powerful as technology evolves and developers build onto the scaffolding of AI innovations. However, it’s important for developers not to get lost in the process and lose sight of their goals.

How AI is Driving User Engagement

AI improves app engagement with customer data by creating personalized content, delivering relevant recommendations, and providing interactive features like chatbots. Most of us have interacted with recent mobile apps where AI is used to provide an enhanced user experience. But the real challenge lies in using AI to drive user engagement, thus increasing usage and customer loyalty.

To build loyalty, marketing professionals must understand how users interact with their app and how they feel about the experience. AI-powered analytics can leverage user data to create a more accurate and in-depth understanding of user behavior patterns, enabling businesses to provide users engaging content at the right time. 

As far as providing the right content at the right time, AI can help developers create split-testing systems that allow them to compare different versions of the same app and pinpoint which version performs best. This will enable developers to make continuous improvements, ensuring users have the best experience on their app.

AI can also detect user patterns around particular choke points and optimize them. For instance, AI can analyze user behavior and pinpoint areas where users are more likely to become disengaged, enabling developers to design a personalized user experience, such as improved loading times and responsiveness, no ads, etc.

AI Enhances Programmatic Advertising

Programmatic advertising is the process of using software to purchase digital ads. It was pioneered by the tech companies of the dot.com craze, and since then, Google Adwords has become a cornerstone of digital marketing strategy.

However, programmatic advertising has limitations and can be inefficient when targeting large audiences. AI-powered solutions can help enterprises overcome this challenge by using machine learning algorithms to identify and target the right customers. After being programmed, ML algorithms aren’t fixed. Instead, they emulate human actions such as learning. In real-world situations, the algorithms can recognize when an advertisement falls short or exceeds expectations and improve from this experience.

The machine is capable of learning without the need for human intervention. It analyzes results and adjusts its approach accordingly. These benefits marketers and brands by allowing for better targeting of specific audiences with customized messages. This leads to increased conversions, perhaps an in-app purchase or two, and more efficient advertising spending. In addition, programmatic advertising platforms can handle large amounts of data that would be overwhelming for humans to analyze.

AI-Driven Personalization Highlights Omnichannel Experiences

Omnichannel experiences are about more than just using different channels to reach customers. They are about ensuring customers have a consistent user experience across other channels. AI-driven personalization can help deliver this for customers by creating a unified and personalized customer experience across all customer touchpoints.

For example, a customer may shop online and then return to the store. If the store has AI-driven personalization technology, it can recognize and greet this active user by name. AI-powered technology can also offer suggestions for items the customer may be interested in based on their past behavior or even offer discounts or other incentives that the customer may appreciate.

How does this relate to mobile app engagement? AI-driven personalization helps brands build relationships with customers. But how to get the user back to the app? AI-driven personalization incentivizes customers to come back and engage with the app. Businesses can offer coupons or discounts for in-app purchases or personalized push notifications from each channel informing customers of upcoming events or sales.

These personalized experiences will create a stronger connection between customers and brands, improving customer loyalty and satisfaction. AI-driven personalization can also enable businesses to increase their acquisition rate by offering tailored marketing programs, offers, or discounts to customers that fit their specific profiles and interests.

Benefits of AI-Powered App Engagement

Businesses that leverage AI-powered app engagement can expect benefits such as increased engagement and customer loyalty, improved customer satisfaction and retention, more data, and better insights into user behavior patterns. On the other hand, customers benefit from more personalized and relevant personalized in-app messages and experiences that cater to them.

AI also helps developers reduce costs by automating manual processes such as testing and deploying app features. Automations allow developers to dedicate more time and resources to developing qualities that increase user engagement. AI-driven apps also provide a competitive advantage to businesses that use them, as other companies may not have access to the same technologies.

While these are notable benefits, some are surface-level; let's dive deeper and see that AI-driven app engagement goes beyond simple surface-level benefits. Using AI-driven technologies in mobile apps makes them:

  • Action-oriented - AI-driven technologies enable apps to respond quickly to user actions and provide more relevant content. However, intelligent apps suggest what's best for the user using real-time data.
  • Responsive - To ensure a better user experience, an app should be designed to effectively interpret and respond to the various forms of input that users provide, including photos, texts, and voice. 
  • Cross-Platform Functional - The app should understand everyday actions and work across different platforms. So devs use AI to manage and organize the results for a seamless, cross-platform user experience.
  • Invaluable for Business Decisions - Smart apps understand user behavior and store data in the backend, which allows them to offer real-time data and analytics. This information can help business owners make informed decisions to increase sales.

How is AI Marketing Influencing Mobile App Users' Behavior?

While AI is bringing the next revolution in various business verticals, including sports, healthcare, finance, modern education, and travel, the most significant change is in the mobile economy. It's clear that the capabilities of AI have disrupted the mobile app ecosystem - in a good way - but how is it affecting individual users?

  • It's Causing Users to Pursue Conversational Experiences - Chatbots can manage multiple clients simultaneously and provide personalized services to meet their needs. Because of this, a recent survey mentions that 95% of smartphone users believe customer service improves with chatbots. In addition, more users are interacting with AI and want to see companies investing in chatbots and AI technology.
  • It's Driving Personalization Efforts - Consumers expect personalized app experiences because their behavior, preferences, and habits constantly change.
  • Increasing Engagement and Retention - AI-driven technologies focus on increasing engagement and customer retention by gathering data from users’ past interactions. AI technology then delivers an experience tailored to the individual. This results in higher engagement and retention rates, as users can access the content they want to see.

The best part is since AI and ML technologies give mobile app technology adaptability, developers can use data analysis and machine learning to produce an experience for users that is constantly evolving.

Do AI Marketing Tools Increase Your App's Monthly Active Users?

Now to an important question, one that everyone wants to know. Yes, AI marketing can increase your user retention because of its undeniable potential to produce marketing content that resonates with mobile app users. In addition, AI marketing tools can improve your app's monthly active users by curating high-quality user-generated content.

An Insider Intelligence report mentions that 62% of consumers expect companies to anticipate their needs, which implies an emotional connection with the brand. AI allows customers to establish their relationships with businesses on their own terms.

Are the Rules of App Engagement Changing?

With the rise of AI, app engagement rules are changing. Companies leveraging AI-powered app engagement can deliver more personalized experiences, build stronger customer relationships, increase app engagement, and drive better results. As AI continues to evolve, one thing is certain: it will play an increasingly important role in the future of mobile app engagement.

While businesses use push notifications, in-app messages, email, and SMS messaging, AI pushes these methods to enable Deep Linking. Deep linking with attribution is a simple and effective way to create a personalized and seamless user journey across your channels. This cross-channel approach removes barriers and provides a cohesive user experience platform. By implementing deep linking, you can ensure a consistent user acquisition experience throughout the customer journey.

As businesses seek to provide more personalized app experiences and gain a competitive advantage, the importance of AI-powered app engagement will only continue to grow.

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