"You have 1.2 million users who installed your app and never came back. Why aren't you talking to them?"
The consultant's question hit me like a truck. I'd spent the last year obsessing over acquiring new users—$4.50 per install, thousands of dollars in creative testing, endless optimization. Meanwhile, over a million people who already knew us were sitting in a database, ignored.
Three months later, our retargeting campaigns were generating 45% of our revenue at one-fifth the CPA of cold acquisition. The users we'd written off became our best customers. Here's how we did it.
Why Retargeting Matters
The average app loses 77% of daily active users within the first 3 days after install. Retargeting helps recover these users at a fraction of new acquisition costs, improving overall LTV and ROAS.
Retargeting ROI
Well-executed retargeting campaigns typically see 3-5x higher ROAS than cold acquisition campaigns, with CPAs 40-60% lower.
Building Your Retargeting Audience
Segment by Behavior
- Installers who never converted: Completed install but no key action
- Lapsed purchasers: Made a purchase but haven't returned
- Cart abandoners: Added items but didn't complete purchase
- High-value churned users: Previously active, now dormant
- Trial expirers: Free trial ended without conversion
Segment by Recency
- 3-7 days inactive: Early lapse, easiest to recover
- 7-14 days inactive: Moderate lapse, needs incentive
- 14-30 days inactive: Significant lapse, stronger offer needed
- 30+ days inactive: Deep lapse, may require aggressive promotion
Creative Strategies
Personalization
Reference specific user behavior:
- "Your cart is waiting" with product images
- "You left off at Level 15" for gaming apps
- "New items from brands you love" based on browse history
Incentives
Match the incentive to the lapse severity:
- Light lapse: Feature announcements, content updates
- Medium lapse: Small discount (10-15%), bonus currency
- Heavy lapse: Significant discount (25%+), exclusive offer
Urgency
Create time-limited offers: "24-hour flash sale" or "Offer expires tomorrow" can significantly boost conversion, but use sparingly to maintain credibility.
Channel Selection
- Push notifications: Free, immediate, but requires opt-in
- Email: Cost-effective, good for detailed messaging
- Paid retargeting ads: Reaches users who uninstalled
- In-app messaging: For users still with app installed
- SMS: High open rates, use for high-value segments only
Measurement Framework
Track these KPIs for retargeting success:
- Reactivation rate: % of targeted users who return
- Cost per reactivation: Total spend / reactivated users
- Post-reactivation LTV: Value generated after return
- Incremental lift: Compare to control group not retargeted
Post-ATT Retargeting
With iOS privacy changes, retargeting requires new approaches:
- Use first-party data and email lists
- Implement server-to-server integrations
- Leverage probabilistic matching where available
- Focus on Android for scaled paid retargeting
Common Mistakes
- Over-frequency: Showing the same ad too often annoys users
- Generic messaging: Not personalizing to user behavior
- No suppression: Continuing to retarget converted users
- Ignoring timing: Not considering user timezone and activity patterns
Conclusion
Retargeting is one of the highest-ROI channels in mobile marketing. Build your segments thoughtfully, personalize your messaging, and always measure incrementality. The users you've already acquired are your most valuable asset—don't let them slip away.