# User Accounts: Pros & Cons for Mobile Growth

- Link: https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/
- Published: 2017-02-04T17:14:10+01:00
- Author: Andy Carvell

![User Accounts- Pros & Cons for Mobile Growth ](https://phiture.com/wp-content/
uploads/2017/02/User-Accounts-Pros-Cons-for-Mobile-Growth-min.jpeg)

User accounts can be a fantastic way to build user loyalty and increase retention.
However, they do not make sense in every scenario and come with significant overhead
versus a simple ‘anonymous’ product experience.

In this post, I’ll outline the key benefits and costs of implementing a user account
system in a mobile product and delve into some of the considerations involved in
implementing user accounts.

Table of Contents

 * [The User Account Model Explained](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#the_user_account_model_explained)
 * [Benefits Of Implementing A User Account Model](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#benefits_of_implementing_a_user_account_model)
 * [Permanence Across Devices, Multi-Device Support](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#permanence_across_devices_multi-device_support)
 * [User Investment](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#user_investment)
 * [Collect Email/Phone Number](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#collect_emailphone_number)
 * [Downsides To Implementing A User Account Model](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#downsides_to_implementing_a_user_account_model)
 * [Increased Friction](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#increased_friction)
 * [Additional Overhead](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#additional_overhead)
 * [Decisions To Make When Considering User Accounts](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#decisions_to_make_when_considering_user_accounts)
 * [Does An Account Model Make Sense?](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#does_an_account_model_make_sense)
 * [When To Ask User To Sign Up?](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#when_to_ask_user_to_sign_up)
 * [Observe Apple’s App Review Guidelines](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#observe_apples_app_review_guidelines)
 * [Summary](https://phiture.com/mobilegrowthstack/user-accounts-pros-and-cons-for-mobile-growth-42847cb10f4c/#summary)

## **The User Account Model Explained**

A _user account model _is defined for the purposes of this article as a system that
permits the user to register for an account or profile which uniquely identifies
them in the product. Furthermore, such a system provides a way to sign in to a previously-
created account (this is often done automatically in subsequent sessions after an
account has been created).

Typically, in order to create an account, the user will be required to provide identification
such as an email address, phone number, or a social ID. Many social networks have
their own ID systems that make account authentication with websites and mobile apps
quick and easy for the user. Examples include: [Facebook Login](https://developers.facebook.com/docs/facebook-login/best-practices),
[Sign In with Twitter](https://dev.twitter.com/web/sign-in), [Google Sign-In](https://developers.google.com/identity/),
etc.

Once a user is associated with an account, it’s typical for apps to persist some
information about the user in the cloud (i.e. not just locally stored within the
app) and to personalize the experience within the app to some greater or lesser 
extent.

## **Benefits Of Implementing A User Account Model**

There are numerous reasons why adding a User Account model can be great for engagement
and retention metrics:

## **Permanence Across Devices, Multi-Device Support**

Smartphones and tablets are lost, damaged and upgraded all the time. In the first
two scenarios, without a cloud-based user account model, all of the user’s data (
e.g. progress in a game, workout history in a fitness app, etc.) would be lost. 
In an upgrade scenario, the app would require some kind of data export and import
feature in order to transfer any data across from the old to the new device: a process
likely to be too confusing or time-consuming for many users.

For all but the most ardent of users, the situation described above is a recipe 
for high churn; users may decide that it’s simply not worth continuing to use the
product.

If a user’s data is backed up to the cloud and a clean install of the app can be
near-instantly restored to the state of the app on the user’s new device, continuity
of experience can be achieved and a user has less reason to abandon the product.

This benefit is compounded in cases where the product exists on both Web and Native
App platforms since users can enjoy continuity of their experience by signing into
their account from desktop devices as well as mobiles. This may also apply to users
who own and actively use more than one mobile device, such as a smartphone and a
tablet.

Taking cross-device support one step further, Spotify makes great use of Apple’s
Handoff feature to provide concurrency control and continuity of playback sessions
between desktop and iOS devices: a user can begin streaming a music track on their
desktop Mac, fire up the Spotify app on their iPhone and seamlessly continue listening,
with the track picking up exactly where they left off.

⌊cross-device continuity in Spotify App⌉⌊cross-device continuity in Spotify App⌉

_(Above: an example of cross-device continuity in the Spotify App)_

## **User Investment**

Simply the act of creating an account requires an investment of effort — and often
also the decision to share their private contact data such as email address. This
account creation investment on the part of the user — even if no other benefits 
such as personalization are conferred — typically results in higher retention than
users who do not create accounts. For more information on this phenomenon, I strongly
recommend checking out [Nir Eyal’s article on user investment](http://www.nirandfar.com/2012/07/makeyourusersdothework.html),
as well as his excellent [Hook Model](http://www.nirandfar.com/2012/03/how-to-manufacture-desire.html)
framework for understanding the psychology of habit and the design of habit-forming
products.

This investment is increased if the user is given options to personalize or curate
their profile and/or experience within the product through having an account. Giving
the user a ‘digital locker’ to store — and revisit — whatever items, progress, history,
bookmarked content, or other data they have amassed through usage of the product,
increases the lock-in factor of the app and gives users more reasons to keep using
it. Put another way, this investment of time and energy increases switching costs,
since the user may have built up a collection of ‘stuff’ over months or even years,
which would be emotionally difficult to abandon.

Enabling a cloud-hosted collection of ‘stuff’ within the product provides rich opportunities
for re-engagement. SoundCloud, for example, discovered that the vast majority of
listening on the platform is ‘repeat listening’ i.e. listening to tracks users had
already heard, liked and saved to their collection. Armed with this insight, the
team optimized the product to make saving tracks and playlists easier and surfacing
the user’s personal collection more prominently within the app.

## **Collect Email/Phone Number**

A valuable side-effect of account registration is the collection of contact details
from the user, usually in the form of email or [phone number](https://get.digits.com/).
This provides a way to uniquely identify the user (and verify their identity in 
a confirmation step), but also — crucially — provides an additional communications
channel and a valuable way to reach out to users with notifications, updates, newsletters,
etc. When done well, such activity notifications and lifecycle marketing campaigns
can significantly increase the retention and engagement of recipients.

Moreover, once a user has an account, it’s possible to request additional information
from them to augment their profile. Giving the user the opportunity to connect additional
social accounts or contribute more information about themselves increases opportunities
for further personalization of the experience (or advertising), lower-friction sharing
and invite flows, and possibly additional communication channels to reach the user
through.

## **Downsides To Implementing A User Account Model**

## **Increased Friction**

As stated earlier, account creation requires some investment from the user. As such,
there will always be some resistance or friction among some users who don’t wish
to invest that effort. Such friction can be minimized through single-sign-on (SSO)
flows such as [Facebook Login](https://developers.facebook.com/docs/facebook-login),
but can never be erased entirely. Friction will increase if additional permissions
are requested from the user at sign-up. Forcing sign-up means accepting some users
will churn or accept a poorer experience rather than create an account.

## **Additional Overhead**

Cloud storage costs, implementation and testing of lost password retrieval mechanisms
and additional security precautions required are just some of the reasons why implementing
an account model should not always be an automatic default when creating a mobile
product. Synchronization headaches across multiple devices, increased risk of fraud
and additional data-protection scrutiny are also reasons to think twice before going
down the user account path.

## **Decisions To Make When Considering User Accounts**

When designing the product, the team should consider whether the benefits of implementing
a user account system are likely to outweigh the — not insignificant — costs listed
above.

## **Does An Account Model Make Sense?**

For some simple apps, there is no obvious _need_ for user accounts, though the team
may still decide to implement them in order to gain user email addresses and to 
increase the user investment in the product. In these cases, the team will likely
have to work harder to figure out how to ‘sell’ user accounts as a benefit to users.
One way to do this is to **place features behind the account ‘wall’**, restricting
access to certain functionality to those users who have an account.

For social platforms or multi-user games, the case for user accounts is far more
straightforward; the creation of a unique identity on the platform is likely to 
be a requirement for all users.

## **When To Ask User To Sign Up?**

If the decision to implement a user account model has been taken, the team needs
to consider how aggressive to be with user accounts. The options range from a full
account ‘wall’ (require sign-up in order to use the product) through making key 
features available only to signed-in users (typical case), or even just having accounts
for users who want them, but making the full product functionality available to 
everyone.

In every case, it’s likely that conversion to sign-up can be improved through testing
and iterating on copy and UX around sign-up; the way in which benefits of an account
are explained to users, and the sign-up flow itself, will usually have a measurable
effect on sign-up rates.

⌊Instagram requires users to have an account to use the app at all, whereas Snapguide
allows users to try the app before registering⌉⌊Instagram requires users to have
an account to use the app at all, whereas Snapguide allows users to try the app 
before registering⌉

_(Above: _[_Instagram_](https://www.instagram.com/)_ requires users to have an account
to use the app at all, whereas _[_Snapguide_](https://snapguide.com/)_ allows users
to try out the app before registering)_

If ‘guest mode’ is implemented, which allows users to experience the app without
an account, the team should run experiments to find the right level of encouragement
required — through in-app messages or other channels — to persuade users to sign
up. The most aggressive approach would be to allow usage of the app only for a limited
time before sign-up is required.

Given that [apps lose 77% of their users in the first 3 days after install](http://andrewchen.co/new-data-shows-why-losing-80-of-your-mobile-users-is-normal-and-that-the-best-apps-do-much-better/?utm_content=buffere4fa2&utm_medium=twitter.com&utm_source=social&utm_campaign=buffer),
it pays to figure out the optimum approach to keep users around the longest. While
typically around 20% of users will bounce at a forced-signup wall upon the first
launch of the app, the other 80% can at least be contacted via email, with some 
percentage of those responding to the email campaign and returning for another session.
In some cases, however, allowing limited — or even full — access without an account
may lead to higher average retention; the best way to be sure is to run a split 
test.

# ⌊onboarding- user account options⌉⌊onboarding- user account options⌉

## **Observe Apple’s App Review Guidelines**

If you have an iOS app, be aware that Apple strongly prefers that apps do not _require_
accounts to function, unless strictly necessary…

⌊data collection and storage⌉⌊data collection and storage⌉

_(Above Apple App Review Guidelines. Src: _[_https://developer.apple.com/app-store/review/guidelines/#legal)_](https://developer.apple.com/app-store/review/guidelines/#legal))

## **Summary**

User accounts can increase retention, help users transition between devices or platforms,
and provide opportunities to increase engagement and investment from users by giving
them a sense of identity and personal storage space. They also create opportunities
to collect contact details and other information from users that can be used for
personalization and lifecycle communications.

Users should first be convinced of the value of an account, which can be hard to
achieve before they have used the product; providing ‘guest’ access to the app is
one way to show users value before asking them to sign up. In any event, not all
users will create an account; expect these users to churn. Engineering & maintenance
costs increase when an account model is used, so the decision to implement one should
not be made without due consideration.
