How to get better users into your mobile app
If you’re in the mobile business, chances are you know how much money your app generates. And you probably also know how many users have installed your app. But do you know which of your customers are your biggest spenders? Or how many of those users came as a result of your marketing efforts or, for that matter, which campaigns are actually working? There’s a good possibility you don’t know any of these answers. And if that’s the case, you’re putting your mobile business at risk.
At least 73 percent of companies don’t measure their mobile marketing efforts or, if they do, their campaigns consistently underperform. That’s a lot of wasted money, especially when you consider that spending on mobile marketing ballooned to over $10 billion this year. Couple this with the fact that average conversion rates for freemium apps can be as low as 1 percent and you have a recipe for going belly-up real fast.
But it’s the cost of doing business, right? Not really. While it’s necessary to market your app, the notion that you have to spend money to make money is mostly a lie. What’s more important is making sure that your spending actually results in capturing valuable users for your app. And to do that you need to know which marketing channels are producing customers that actually contribute value to your mobile business.
Effective versus ineffective app marketing
There are endless ways to market your app, but not all of them are created equal. Budgets can quickly get out of hand when you start advertising to potential customers using multiple campaigns, channels, messages, ad networks and so on. If it works out, great. But if not, you’ll be out a lot of money for little return.
For most mobile companies, this latter situation is more the norm than the exception. It’s also why 70 percent of developers say they aren’t happy with their app marketing.
The secret behind an effective campaign isn’t much of a secret. In essence, all you need to do is make sure that your ROI is higher than your advertising costs—the bigger the gap, the better.
The problem comes in the execution. How do you create a campaign that actually delivers the high-value users you need? To do that, you need to know how every detail of your marketing is resonating with consumers.
Are you able to monitor customer behavioral trends and use that data to match the right offers to the right audience or cohort? Are people clicking on your call-to-actions, if not, do you know why? Are you A/B testing your marketing creatives against each other and do you have the tools and expertise to understand the nuances behind why one set of copy outperforms another?
If you can answer these questions, you’ll not only save a lot of money, but you’ll also boost your ROI. Because when you know which campaigns are floundering and which are succeeding, you can cut marketing bloat and reinvest those dollars into initiatives that work—letting you bring in even more quality, high-spending customers.
That’s why accurate marketing attribution is important because it lets you connect your app installs and most active customers to the ads that originated them.
Measuring the value of your channels, creatives and cohorts
Just like how every marketing campaign isn’t equal, not every customer who installs your app brings the same value to your company. Because getting a lot of installs are meaningless if your users aren’t spending anything or churning out early. Therefore, the question is: How do you measure the value of your acquisition in relation to your marketing?
For instance if you were running a mobile ad campaign, it’d be incredibly useful to know which ads brought in the most users with the highest lifetime value (LTV). The problem is that in mobile this isn’t the most streamlined process in the world, especially if you have an iOS app.
While there are standalone programs that allow you to track acquisition, they don’t let you easily connect and compare these metrics against a user’s subsequent behavior, and ultimately their LTV. But with Kontagent’s Mobile Acquisition Tracking (MAT) you can do exactly that.
MAT is integrated into Kontagent’s kSuite platform. With it, you can monitor the true performance of each of your campaigns—from creation to conversion to LTV. This means you’ll know which ads generated which customers and what those users did after installing your app, throughout their entire lifetime.
Again, this is important because in order to increase your revenue, the quality of your users often matters much more than the quantity.
Cut marketing bloat and boost revenue
When it comes to driving revenue, cost efficiency is incredibly important because every marketing dollar spent increases your break-even point. This is the point in which your cost to acquire a user becomes equal to that user’s spending. It’s only once you surpass this limit that you’ll start to make a profit off that customer.
However, most mobile users don’t convert on their first session. And even when they do finally monetize, if your marketing expenses are inflated, you’ll have a hard time catching up to your break-even point, which means you’ll have to keep customers engaged longer.
But, as everyone in mobile knows, retention rates can drop exponentially as time and sessions increase. Therefore, the key to profitability lies in bringing down your break-even threshold. And to do this, you need to focus on three things:
1. Eliminate ineffective marketing channels and creatives
Kontagent’s kSuite platform can lower your break-even point by helping you identify your most and least effective campaigns. By cutting out failing marketing channels, you’ll decrease the amount of money a customer needs to spend in your app before he or she becomes profitable to you. You’ll also be able to take the money you saved and put it back into the channels and creatives that work.
2. Attract engaged and loyal customers
It’s a well-known fact that customers who use an app often are more likely to monetize than less frequent users. Therefore, tweaking your marketing to grab loyal customers is essential to driving your app’s revenue.
That’s where Kontagent can help by allowing you to link your customers to the ad channels that spawned them. From there, you’ll be able to track the usage and spending patterns of these customer cohorts. This will let you zero in your marketing efforts onto the channels that bring in high-value users.
And with kSuite’s predictive lifetime value features, you’ll be able to forecast which of your new customers will spend the most and use this insight to make quicker decisions around your marketing. All of this translates into running more effective and cost-efficient campaigns that will bring in the most loyal customers.
3. Find customers who are advocates for your brand
Customers who share their in-app achievements on their social networks and refer their friends to your app can be the best forms of marketing. These users are typically the most engaged and will often convert their friends into similarly loyal users for you for free.
Using Kontagent, you’ll be able to get a deep view of your customers’ social activity and discover which ones are driving the most referral and organic installs. By tying these metrics with your marketing channels, you’ll be able to target this unique group of brand advocates.
There’s a definite science to marketing mobile apps and understanding your data is essential to getting a true sense of your campaign’s ROI. Certainly you could go without tracking these metrics, but be warned that the hit to your revenue could be severe—both in terms of smaller overall profits and the money you’ll waste on ineffective marketing.
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