After listening to the ASO (App Store Optimization) last week, with Steve Young of App Masters, I became more intrigued about App and Mobile optimization and analytics. I really didn’t know there was such a thing but apparently, rankings matter in the App Store just as much as they matter on Google. If you’d like to follow up on this topic, you can find App Masters on YouTube and also listen to him through podcasts. (http://www.appmasters.co/)
As for Mobile/App Marketing Analytics, there are a few metrics that matter most in their effectiveness.
- Average Revenue Per User (ARPU) (Walz, 2015): Although this metric seems straight forward and generally useless without other info, it is pertinent to know in order to determine the effectiveness of the other following metrics. This metric is found by dividing the total amount of revenue divided by the total number of users in a given time frame, such as one month (Walz, 2015).
- Cost Per Loyal User (CPLU) or Cost Per Install (Walz, 2015): And this is why the Average Revenue Per User is so important. In order for your ROI to make sense, your ARPU must be greater than the CPLU. For many mobile apps, ad spend is just not justified when it costs more per ad click and install than per average user (Walz, 2015). This can be measured by dividing your ad spend by the total number of installs.
- Retention (Walz, 2015): Again, ARPU and CPLU become important factors in the retention metric. If your customers aren’t sticking around then the average revenue per user drops each month and obviously the loyal users drop as well, meaning less revenue. After one year, less than 4% of people are still using an installed app, in general (Walz, 2015).
- Engagement (Qualitative) (Walz, 2015): Important factors in engagement measuring are session length, session frequency, conversion rates for events or actions, interactions and opt-in notifications or opt-out notifications (Walz, 2015). These are all important in deciding how effective your ad spending will be, based on customer satisfaction.
The other marketing strategy that I’m currently learning about and actually using is e-mail marketing. Studies show that e-mail is still a highly effective marketing tool, even among Millenials, thus making its metrics still relevant to today’s digital advertising campaigns (Roesler, 2016). Many e-mail marketing campaign programs, such as MailChimp, already provide an A/B comparison metric, that is easy to use and read. Some metrics that are necessary to determine if an e-mail campaign is working include:
- Click Through Rates (Neely, 2014): Once you get through the obvious Open Rates, you’ll break into the Click Through Rates. This metric lets you see how many people clicked somewhere on your e-mail. One way to increase this number is to make your e-mail mobile friendly, as many people are reading e-mails solely on smartphones.
- Hard and Soft Bounces (Neely, 2014): hard Bounces are e-mail addresses that do not exist or are spelled wrong, soft bounces are those that are sent to a full inbox. Many soft bounces come from an e-mail address that is given as a secondary ‘junk’ e-mail address (Neely, 2014). It’s important to watch these and clear them to optimize your customer list, especially if you’re paying for an e-mail service based on the size of your list.
- Earnings Per Click (Neely, 2014): Earnings Per Click is actually an incredibly important metric because just like pay per click ads, earnings per e-mail can help us determine how much revenue is being made through e-mails. If you are making way more revenue through e-mails, than pay per click ad costs might not be as necessary or the opposite can occur, but you never know until you run the metric.
- Forward Rate (Neely, 2014): For some, the forward rate includes the share rate as well. If you’re adding your social media share buttons in your emails you could see a return (Neely, 2015). As we all know, sharing is most important because a personal referral is better than any paid advertisement.
Neely, P. (2014). 11 Email Marketing Metrics Ranked in Order of Importance. Retrieved from http://www.practicalecommerce.com/11-email-marketing-metrics-ranked-in-order-of-importance.
Roesler, P. (2016). Study Shows Email Marketing Still Popular and Effective With Millennials. Retrieved from https://www.inc.com/peter-roesler/study-shows-email-marketing-still-popular-and-effective-with-millennials.html.
Walz, A. (2015). The Five Mobile Marketing Metrics That Matter Most. Retrieved from https://www.apptentive.com/blog/2015/04/07/the-five-mobile-marketing-metrics-that-matter-most/.