Mobile Analytics: The Next Step to Maximize ROI on Apps
Numbers are critical but simply recording the number of apps downloaded and monitoring consumer reviews is not enough to strategically plan the future path of the company. Instead, understanding user behavior and analyzing when, where and for how long they use the app, is critical for success.
A mobile analytics report by Flurry in 2014 concluded that U.S. consumers spend 86% of their mobile time on apps, which is six times more than the time spent on mobile web. Companies aiming to harness this opportunity must understand that the old digital marketing rules do not apply to mobile app promotion.
In the current scenario, non-app store ROI has a higher potential than app store ROI as there is an unpaid alternative to every app. So each app is created with the goal of achieving maximum number of installs, followed by repeated app usage and then extensive in-app purchases. Mobile analytics measure the users’ responses, to every trigger, allowing creation of acquisition and marketing strategies. As a result, these offer maximum user value and help increase return on investment.
Mobile App Metrics that can Change the Game
Based on the company’s custom needs, there are a wide variety of metrics available to choose from. However, the following metrics help them align towards their goal more productively:
- User Acquisition Cost- shows the exact money spent to get a single user and can be improved by promotion of the app to get maximum downloads.
- User Retention Rate- measures the number of people coming back to use the app after downloading. Continuous content improvement and updates can improve this metric.
- Average Session Length- directly represents the interest level generated by the app and its usefulness to the user.
- User Lifetime Value (LTV)- is calculated to show the revenue that the user generates over its lifetime as it can show growth over time for different segments.
- Screen Flow- records the order of the screens that the users follow to conclude how they navigate the app, thus providing the opportunity to create in-app marketing.
- Net Mobile-Influenced Customers- calculates the percentage of app users that have made a purchase with respect to the total number of customers and can be improved by increasing awareness.
These metrics must be taken full advantage of, to track the company’s performance, and make future decisions. Companies that do not use Mobile Analytics are unaware of its benefits and once they come to terms with the same, they realize that these are worth the time and money required to implement.
Advantages of Mobile Analytics
- Increases the ROI as unproductive channels are identified and eliminated.
- The detailed retention data is used to tackle the problem head-on and offer solutions. It also creates the possibility of re-targeting.
- Increases user engagement by providing user-specific feedback, hence the right issues can be addressed.
- The detailed data obtained gives companies the liberty to explore new channels of marketing which helps them stand out.
- The app-open rates are increased as user targeted push messages are more efficient than general push messages in maintaining customer loyalty.
Also, the data obtained from Mobile Analytics streamlines the branding process by facilitating investment of resources through specific targeting.
The data obtained by identifying and optimally using the suitable mobile metrics provides insights which can be used for planning, designing marketing strategies, and improving the overall user interface. Mobile Analytics helps provide more personalized service to users, encouraging them to engage, thereby improving user acquisition, and retention. With an optimum marketing mix, organizations can leverage the benefits of integrated Mobile analytics and eventually maximize the ROI, on their apps.