Many App Developers Could Miss Out On Expected $51 Gross Revenue For 2016

A new report by Localytics puts user app retention at 1 in 4 or 23 percent. This means that out of the 1.5 million apps on the “App Store” and 2 million on “Google Play,” the number of apps that customers use more than once is quite small. With the 2016 app revenue forecast standing at $51 billion according to App Annie, a lot of app developers are not going to get a piece of the pie.

Basing their findings from analyzing 37,000 applications, Localytics found that retention has actually increased compared to 2015. Unfortunately, this still means that 1 in 4 users abandon apps permanently after only one or two uses. More than that, those who give up on apps after using them 11 times or less is at 38 percent.

According to the report, this business model is not sustainable since it means that app developers are not keeping up with the needs of their consumers fast enough. It’s not all gloomy news though.

TechCrunch notes that this turbulent time for app developers has also led to the discovery of new ways to market apps. For example, “Google” is planning on setting up an app system where customers can instantly open the app for the first time just by clicking the URL.

Before, users would need to find the app, download it and then install it before they can use it. Seeing as how most smartphone users are incredibly impatient and demand more efficient services, shortening the process of using apps is expected to help generate interest.

Having said that, “Google” is not the only cog in the wheel as “Apple” also has a sizeable user-base. If the maker of the “iPhone” does not make similar or better changes to their platform, they could see a decrease in their number of users.