How to overcome onboarding challenges in regulated industries with on-device AI
Introduction
In the rapidly evolving app economy, a select group of top-tier applications dominates global subscription revenue, while countless others compete for user attention and profitability. This "winner-takes-all" landscape presents significant challenges, particularly as customer acquisition costs (CAC) continue to rise and user churn remains high. The increasing dependence on dominant platforms like Meta, Google, and Apple worsens these issues, making it imperative for apps to optimize every facet of user engagement, especially during the critical onboarding phase.
The App Economy's Revenue Distribution
In 2022, the app economy continued to exhibit a pronounced disparity in revenue distribution, particularly concerning subscription and in-app purchase (IAP) revenues. During the first quarter of 2022, approximately 82% of all revenues for non-gaming apps were generated via subscriptions, highlighting the dominance of this monetization model in certain app categories.
Despite the significant revenue generated through subscriptions and IAPs, a substantial portion remains concentrated among a limited number of top-performing apps. This concentration underscores the challenges that smaller developers face in capturing a meaningful share of the market, as they strive to compete in an environment where leading apps dominate user spending.
This revenue concentration is further evidenced by the overall app market's financial landscape. In 2022, total revenue in the worldwide app market was approximately $431 billion, with in-app purchases accounting for around $205 billion and premium apps generating approximately $5.3 billion.
These figures illustrate the ongoing challenges within the app economy, where a few top-performing applications capture the majority of subscription and IAP revenues, leaving the vast majority of apps striving for a modest share of the market.
Challenges in FinTech Onboarding
FinTech applications face unique hurdles during user onboarding. The necessity for compliance with stringent regulations often results in cumbersome and time-consuming processes, requiring extensive paperwork and documentation. This complexity can lead to user frustration, especially when individuals initiate onboarding without a clear understanding of the time commitment involved. A survey by Deloitte found that 40% of customers abandon onboarding processes in digital channels because the process takes too long or requires information that the customer isn’t willing to disclose.
Leveraging Real-World Context with ContextSDK
To address these challenges, integrating real-world context into the onboarding process can significantly enhance user experience and completion rates. Technologies like ContextSDK's Context Decision enable apps to assess a user's real-world context - such as being in transit, at a desk, or relaxing at home - at the time of onboarding. This insight allows product teams to design dynamic onboarding experiences tailored to the user's current situation, thereby reducing friction and increasing the likelihood of successful completion.
The Impact of Real-World Context on User Engagement
Understanding and adapting to a user's real-world context is crucial. For instance, a user attempting to onboard while commuting may prefer a streamlined process, whereas someone at home might appreciate a more comprehensive introduction. By employing on-device machine learning models, apps can detect these contexts in real-time and adjust their interfaces accordingly, leading to improved engagement, retention, and monetization.
Re-Engaging Users with Context-Aware Notifications
For users who abandon the onboarding process, context-aware re-engagement strategies can be highly effective. ContextSDK's Context Push enables the delivery of push notifications timed to coincide with favorable user contexts - such as when the user is stationary, actively using their device, and has sufficient battery life. This approach increases the likelihood of re-engagement and completion of the onboarding process.
Conclusion
In an app economy characterized by intense competition and high user expectations, leveraging real-world context through on-device AI offers a promising avenue for enhancing user experiences. For FinTech applications, in particular, adopting such technologies can streamline onboarding processes, reduce abandonment rates, and ultimately contribute to sustained user engagement and business success.
About ContextSDK.com
ContextSDK.com is at the forefront of revolutionizing mobile app experiences through cutting-edge on-device AI solutions. With innovative products like Context Decision and Context Push, ContextSDK empowers app developers to integrate real-world user context into their workflows, enhancing engagement, retention, and monetization. By leveraging edge AI technology, ContextSDK delivers actionable insights and personalized experiences without compromising user privacy, enabling apps to create seamless, context-aware interactions. Discover how ContextSDK is transforming app development at ContextSDK.com.
