Some mobile marketers believe an App success is measured by the download rate, precisely, install rates. Of course, a mobile app with 200k install should be a goldmine. But the right question to ask is this: Is customer acquisition really the main goal of today’s mobile marketers? Obviously not!
Evaluating a large number of major mobile apps, we’ve discovered a couple of key trends in terms of installs which could leave you doubting your present advertising strategy.
Initially, installs have become pricey.
With more than 1.4 million applications in both the App Store and the Play Store, it’s getting more difficult to vie for the attention of the customer.
Lots of marketers have tried to evade the app store’s search ranking algorithm by acquiring customers making use of app install ads, however, these are valued out of reach for a lot of mobile marketers and one-man developers. For several applications, especially in the gaming niche, the price of getting a customer may even override the lifetime worth of that customer – making such an ad campaign economically impractical.
Until you have a very good knowledge of both customer acquisition costs (CPI, cost per install) and average revenue per user (ARPU), you may be surprised with your ad spend return:
Your app may see a large number of new installs daily, but what exactly does this convert to? How many of these will end up active, engaged, and beneficial users of your app? Approximately, we’ve noticed that just around 25-40% of new users will re-launch your app after the first week, and this number decreases as time passes – eventually dropping to 4% twelve months out. Out of the many retained customers, just a small percentage will remain on to be active and engaged users of your app. In simple terms, downloads and installs means very little to the success rate of your application.
We’ve seen that retention doesn’t seem good for the average mobile app. Precisely what many mobile marketers don’t know, however, the fact remains that customer churn can be predominantly controlled with some basic upgrades to your app’s customer experience.
Listed here are my five best techniques for enhancing retention and changing the needle on your mobile earnings.
1 Launch a Voice of the Customer (VOC) Initiative
The average company never hears from 96% of their clients. For each vocal customer complaint, researches show that there are 26 similarly unsatisfied, but silent customers – the overwhelming majority of whom will leave your app without ever showing the reason.
Before you decide to enhance retention, you must understand the reason why your customers are leaving in the first place. This requires both facilitating your clients with a simple way to leave feedback on your app and definitely listening to that opinion as well as other social signals.
Developers and marketers equally work to build the perfect customer experience. Without the real customer thoughts, nevertheless, these kinds of methods usually miss the boat. Numerous do not have the tools and data to verify their assumptions and examine if their picture of the customer experience is really in line with their customers’.
App store ratings and reviews give an effective kick off point for a Voice of the Customer program, yet don’t present anywhere near the organic picture you need to know your customers as a whole. Recently, we carried out our 2015 Consumer Survey, and discovered that although 75% of respondents recognized app store reviews as a vital driver, just 36% had truly left a review in the past year. It’s up to us, as mobile marketers, to offer a voice to the majority of customers not willing to leaving reviews in the app stores. To achieve this, marketers are bridging customer support and mobile – introducing in-app messaging for one-to-one conversation with their mobile clients, driving more app store ratings and reviews with sensible prompts, and accumulating customer insights at scale making use of in-app surveys and feedback forms.
These insights allow marketers to develop in on customer pain areas and requests for new features that can be used to shape future updates of the app and earn customer loyalty.
2 . Make use of Contextually Pertinent Messaging and Active Engagement Tactics
In the last category, we included the intelligent qualifier to rating prompts as well as in-app messaging. This can be a minor but crucial difference in terms of customer retention and total satisfaction.
Most marketers believe that the solution to customer engagement is messaging, which all-too-often manifests itself in the form of an endless barrage of push notifications. The certainty, however, is the fact push notifications may be harming your app’s retention rates. Perhaps you may be unwittingly leading customers to opt-out or even uninstall your app just to get a rest from the disturbing notifications. And in fact, we found push notification abuse to be among the major factors contributing to app uninstalls.
In regards to retention, the way you message your customers is important just as much as the message you send to them. As a matter of good practice, we’ve discovered the best solution to involve users is to call events (rating prompts, messages, surveys, etc.. ) at key ‘mobile moments’ all through the customer journey. These memories are usually bound to the completion of an in-app task – for instance, after a customer has made a purchase or watched a video. Conversely, trying to engage customers before or in a certain task can be seen as disturbing which can lead to increased exit rates and lower response rates.
Your customer opened the app with an aim or task in mind – allow them to achieve this aim before sending them a message linking them to a different part of the app or distracting them from the task at hand.
Once users are involved in an intelligent manner, the outcomes speak on their own. The graph below demonstrates standard retention rates for mobile applications over time and the increase in retention that you can anticipate to see as a result of communicating with your customers in an intelligent, appropriate, and contextually pertinent manner.
The most effective way to sustain your customers is to let them know they’re highly valued. After accumulating and evaluating your new customer observations, give thanks and acknowledge your customers’ feedback. When you observe feature requests or bug reports for a particular feature, consider working it into your product roadmap. And when introducing this new update, tell your customers that you’re listening and let them know that the modification was made feasible merely by their continued feedback.
In this way, you’ll utilize and convey a customer-first approach that will let them know their opinions aren’t only listened to, but highly treasured as well.
3 . Give Users a motivation to Come Back
In the according to Bill Gates, “content is king.” 70% of applications are neglected after the first week, which usually comes down to stale content. If you want customers to come back to your app every single day, offer them something different and original whenever they access the app.
These rich content updates might be in the form of a flash sale, a regular comic, a stream of user-generated pictures, a loyalty or achievement program, or something as easy as reset activity limits.
Regardless of which shape it takes, as users come to expect new content, they’ll get into a routine of consistently launching your app to see what’s new and fascinating.
To know the exact information that will give the most value, and the perfect desire to come back, put yourself in your customers’ shoes making use of your newly discovered insights. What would make you, as a customer, want to reconsider using the app again?
4. Know the Math the App Business
Lastly, possess a means of evaluating your retention marketing techniques. What are your major motives, and what metrics make the most sense for evaluating their success?
Common metrics involve retention (and its inverse, customer churn), monthly proactive users, daily active users, uninstalls, loyalty, and a lifetime’s worth.
Identifying each of these metrics is easier said and done It ultimately comes down to the parameters you placed for each specific app or campaign: How involved is an ‘active customer’? What makes a customer loyal to your app? Can a customer who launches your application once in two month be referred to as an active user?
To assist you consider these metrics, I’d suggest trying out these awesome courses on AppLift, tapdaq, Apptweak, and Apptentive:
• User Retention: Yes, But Which One?
• Measuring and Attaining Customer Loyalty in the Mobile Age
• Why A Correct Understanding Of The Lifetime Value Is Essential To Mobile Marketing Success
• The 5 Mobile Marketing Metrics That Matter Most
It’s not mobile-first or even mobile-only. The app’s that succeed in today’s competitive industry are those that consider people first.
With these five techniques, I really hope you find the retention in your control By considering customers approach to mobile marketing and app development, you can improve retention, increase monetization, and save money on expensive acquisition campaigns.
Best of luck as you work on earning customer loyalty and love.