MAM
86% of users quit shopping apps after 4 weeks: new research from CleverTap
MUMBAI: CleverTap, the full-stack customer retention platform that helps consumer brands maximize customer lifetime value, today released the Industry Benchmarks for Ecommerce Apps. For ecommerce brands, high customer acquisition costs (CACs) and price-sensitive buyers impact the overall customer lifetime value and profitability due to low retention. With low entry and exit barriers, customers have a plethora of options to choose from even within niche categories.
The benchmark report, which analyses 3.1 billion data points across 18 million devices and 15 million unique users, provides user insights that will help growth teams benchmark their app’s performance against some of the most successful ecommerce apps. The report also covers strategies to help you improve user engagement and retention.
Almitra Karnik, Head of Marketing at CleverTap said, “the cut-throat competition in the ecommerce industry makes it crucial for brands to deliver a superior customer experience. Our research indicates that ecommerce brands are losing customers faster than acquiring them. On average, shopping apps lose 86% of users within the first 4 weeks of download.
“Without focusing on retention, brands are trying to fill a leaky bucket, focusing on acquiring more users that don’t stick around for long. This impacts the top line as well as customer lifetime value for these brands”, she added.
The benchmark report provides insights on how users flow from one lifecycle stage to another and provides recommendations to increase repeat purchase rate and hence user retention. Some of the other highlights from the report include:
Registration: Only 16 percent of new users complete the signup process within a week of installing the app
Retention: Only 11.6 percent of new users remain active in the first week
Uninstalls: 42 percent of new users uninstall the app within the 30 days of app install
Reinstalls: Only 5.21 percent of users reinstall within 30 days of app uninstall
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI:Â Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
