How to Acquire Loyal App Users

7/31/2019 How to Acquire Loyal App Users

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How to AcquireLoyal App UsersStrategies to grow in-app purchases,ad revenue & registrations

Get l yal app users


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1 | Fiksu | Mobile App Marketing eBook Series | www.fksu.com/ebooks

In the beginning, webestowed our mobile apps

upon the masses.And we went ater them with a vengeance.

The name o the game was volume. The higher the downloadvolume, the more revenue our app would produce, and wed

be on our way to ortune and ame.

So the thinking went.

Pressure to deliver the download numbers was relentless. Not

only to generate downloads in high volumes, but at extremespeed. So we did what seemed only reasonable we spent to

reach our download goals oten overpaying. And we hoped

that users would convert.

And the volume-driven download acquisition model was born.


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User Acquisition Evolution

Then we volume-driven marketers noticed something quite interesting. By

driving large download volumes, our apps started to fnd their way up the appstore ranks. And these higher ranks gave us new levels o visibility that ledto our apps being discovered organically that is without any advertisingspend. And these organic users were not only ree, but they seemed to

have higher value than ad-driven or incentivized users. Organics were driving

some ROI.

The game was now about rank.

And the competition was on.

Developers fghting tooth and nail to get their apps ranked as high as possible.

Volume remained a ocus, but as a means to higher rank. Developers ob-

sessed over rank, and would spend even more on advertising to drive up

their apps rank. And the industry employed highly creative approaches to

get apps ranked higher rom guaranteed rank placements to other rankmanipulation techniques.

And so we saw the frst major mobile app marketing shit. The Volume-Drivendownload acquisition model evolved into a new Rank-Driven download ac-

quisition model.


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Quantity or Quality?

Developers ound themselves using brute orce to drive high

volumes o downloads to achieve higher rank and hopingor a positive ROI. And as developers pushed or low-cost

downloads, ad networks were happy to oblige, creating services

that incentivized people to install the appbut never actually

use it. As a result, developers that ocused primarily on volume,

rank and cost-per-download metrics continued to overspend

for downloads that didnt translate into ROI.

The lesson?

Quantity looks good but quality drives business.

And today, mobile app developers are arriving at the same

conclusion. Weve learned that volume and rank look good

and eel right, but theres one caveathigher rank and more

downloads dont always translate proportionally into more

conversions or revenue.

TOPGUA

RANTEED

$

ROI

HIGHER

-OR-

25

RANK


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Targeting Loyal App Users

Many app developers have concluded that volume and rank, at

worst, are superfcial metrics and, at best, short-term strate-gies that are not sustainable. Downloads oten dont convert

into launches. And launches are oten one-time events thatnever translate into purchases, registrations or repeat visits.

Weve learned that users abandon an app oten ater a single

use, and those high download numbers are really just part

o a high churn rate. To monetize our apps, weve concluded

that user engagement is more important than driving largevolumes of downloads.

26% of apps are used only once

after being downloadedLocalytics - 2011 study


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Download Metricsvs. Loyal User MetricsApp ad clicks, downloads and launches can be misleading metrics.How many times do users return? Have they made a purchase? Did

they register?

Depicted on the ollowing page is an example based on real data thatdemonstrates how a smaller number o loyal users delivers an ROImuch higher than a larger volume o downloads.

In this analysis, the loyal user metric is defned as a registration witha value o six dollars.

METRICS STUDY


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Metric Download Acquisition Model Loyal User Acquisition Model

Marketing Cost $40,000 $40,000

Downloads 110,000 27,500

Cost-Per-Download $0.36 $1.45

In the volume-based Download Acquisition Modelin the let column above, the metrics look

much better than the Loyal User Acquisition Modelmetrics in the right column. Download vol-

ume is 4x higher, and cost-per-download is substantially less. However, a closer look at ROI

reveals a dramatically dierent story...

Metric Download Acquisition Model Loyal User Acquisition ModelMarketing Cost $40,000 $40,000

Downloads 110,000 27,500

Cost-Per-Download $0.36 $1.45

Registration Conversion 5% 35%

Registrations 5,000 9,500

Cost-Per Registration $8.00 $4.21

Value-Per-Registration $6.00 $6.00

ROI ($10,000) $17,000

We see rom this example that targeting high-quality, loyal users can be 2x more proftable

than a strategy based on driving high volumes o low-cost downloads.

Though the

Volume-Based

Download AcquisitionModel delivers 4x

more downloads at

a lower cost-per-

download

the Loyal User

Acquisition Model

delivers almost doublethe registrations and a

much higher ROI.


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Loyal User Evolution

The mobile app market has started to mature.

Real-time data and historical perormancestatistics are now available, giving marketersthe ability to identiy the best trafc sources

or acquiring loyal users. And new technologymakes it possible to target these users.

And thus, the user acquisition model evolves

once again. To an acquisition model based

not on volume and rank but on targeting andmeasuring Loyal Users.


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The Loyal UserAcquisition Model

Mobile app marketers have learned that the

most eective way to acquire loyal users is tohave a user acquisition strategy based on ROI

metrics rather than download metrics as itenables them to truly scale their business in

an ROI-positive way.

Thus, developers are moving from the volume/rank-based download acquisition models to

an ROI-based loyal user acquisition model. In

this model, download volume may be lower, but

loyal usage is much higher, leading to more

revenue with substantially higher ROI.

Volume-Driven Download Acquisition Model

Rank-Driven Download Acquisition Model

ROI-DRIVEN LOYAL USER

ACQUISITION MODEL


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So What is a Loyal User?

A loyal user is simply a user who takes an action that ties

back to your ROI. For aPublication

app, a loyal user mightbe someone who registers and becomes a member. A loyaluser o a Dealor Gameapp may be a customer who makes

a purchase. For apps that generate revenue through advertis-ing, a loyal user may be someone who opens the app at least

fve times.

And now that the mobile app market is maturing, there is a

plethora o historical data available that lets marketers identiythe best trafc sources or their users. And there is a new

technology platorm already in use by many o the top devel-

opers to acquire these loyal users.

Loyal UserA user who takes an

action that ties back

to an ROI, such as

purchases, repeat visitsand registrations.

Purchases Repeat Visits Registrations


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Fiksu for Mobile AppsDelivers Loyal App Users

This new technology platorm is Fiksu for Mobile Apps, and its used by lead-ing app developers to drive app-related revenue by acquiring highly engaged,

proftable, loyal users.

Fiksu or Mobile Apps is a mobile app user acquisition platorm or app devel-opers that need to generate large volumes o downloads by loyal users who

are more likely to convert.

Fiksu automates the targeting and tracking o loyal users in order to spendad dollars wisely, more cost eectively and most importantly, based on per-

ormance.

The Fiksu Platorm tracks in real time the interdependencies between an apps:

- Ad Performance - App Store Rank

- Downloads - Post-Download Events

Fiksu then uses data rom these sources to optimize app advertising in realtime, precisely targeting ads based on numerous criteria, to deliver the highest

number o loyal users at the lowest cost possible.


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POST-DOWNLOAD EVENT KNOWLEDGEBASEThe Fiksu platorm employs the worlds only mobile app post-download event knowledgebase, with

billions o post-download events, each tied to a specifc trafc source. This historical data and

knowledge enables Fiksu to target ads to trafc sources that are more inclined to deliver loyal users.

ACCESS TO ALL MAJOR TRAFFIC SOURCES

Fiksu gives app marketers access to dozens o leading trafc sources, including more than 35 ad

networks and billions o impressions with just one piece o tracking code.

REAL-TIME TRACKING AND OPTIMIZATION

Fiksu tracks and measures ad perormance (rank, downloads, source, cost) and post-download events

(launches, purchases, registrations, usage, game levels, conversions) in real-time and optimizes ad

spend toward the trafc sources that generate a higher percentage o loyal users at the lowest

acquisition cost.

FULLY-MANAGED PLATFORM

Fiksus core DNA is in promoting mobile apps and weve made our mark with expertise in this area.

Our one-stop approach oers guidance on user acquisition strategy, ad creatives and media planning

in order to execute eective ad campaigns based on perormance metrics. Our SaaS approach, lets

marketers outsource to a dedicated Fiksu account team whose ocus is on achieving results based on

your app needs and business model.

HOW FIKSU DELIVERS LOYAL USERS


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Deliver on Your Loyal UserAcquisition Strategy

The mobile app industry is maturing. And with this growth is amobile app marketing evolution rom driving large volumes

o downloads, to targeting high-value, loyal users.

More and more leading mobile app developers are turning toFiksu to help them execute successully on their loyal user

acquisition strategy by acquiring loyal users cost eectively

and in large numbers.

To grow in-app purchases, ad revenue & registrationscontact Fiksu today.

Phone: 1.855.463.4578 | Email: [email protected] | Website: www.fksu.com


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13 | Fiksu | Mobile App Marketing eBook Series | www.fksu.com/ebooksCopyright 2012 Fiksu. All rights reserved. Fiksu and Fluent News are registered trademarks and the Fiksu logo is a trademark o Fiksu, Inc. Apple and the App Store are registered trademarks o

Apple, Inc. Android is a registered trademark and Google Play is a trademark o Google, Inc. All other trademarks mentioned herein are the property o their respective holders.

Fiksu, Inc.

101 Arch Street, Suite 304

Boston, MA 02110

Phone: 855-463-4578

Email: [email protected]

Fiksu, Inc.

20 Hanover Square

London

W1S 1JY

Phone: +44 (0) 203-585-3412

Email: [email protected]

US Office UK Office

Phone: 1.855.463.4578 | Email: [email protected] | Website: www.fksu.com

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How to Acquire Loyal App Users