This document discusses growing customer lifetime value for mobile apps. It notes that acquiring new users is increasingly expensive, with the cost per loyal user rising each year. Additionally, user retention is a major problem, as only 5% of users still use an app after 6 months. The document recommends segmenting users based on their usage patterns and spending profiles to better understand retention. It provides an example of a games app that segmented users into beginners, intermediates, whales, etc. and targeted each segment differently to improve retention and revenues. Addressing each user segment individually helped increase the number of purchasing users and revenue per user.

1. How to Grow the Customer Lifetime Value for Your App

2. • Co-Founder madvertise
• Mobile Ad Network, Berlin, 2008
• Co-Founder Remerge
• App Retargeting Platform, Berlin, 2014
• Background: Technical Product Management
About Pan

3. Growth of the App Ecosystem
0
50
100
150
200
'09
'10
'11
'12
'13
'14
App Downloads
$ 0
$ 25
$ 50
$ 75
$ 100
'11
'12
'13
'14
'15
'16
'17
In-App Turnover
$ 0
$ 10
$ 20
$ 30
$ 40
'13
'14
'15
'16
'17
'18
Mobile Display Ad Spent
0
1
2
3
'12
'13
'14
'15
'16
'17
'18
Smartphone User
Sources: Apple, Google, Gartner, eMarketer
Bn
Bn
Bn
Bn

4. How Do I Get New Users?
• Cost-per-Install campaign size 2015: $10bn
• Facebook, Fiksu, Tapjoy, Applift, etc.
• Do localized low-cost promotion
• Social-Media, create valuable content
• A good, innovative product helps
• App store feature

5. Purchasing New Users is Increasingly Expensive
$ 1,00
$ 1,20
$ 1,40
$ 1,60
$ 1,80
$ 2,00
'12
'13
'14
Cost per Loyal User
Source: Fiksu, Nanigans
$ 0,00
$ 1,00
$ 2,00
$ 3,00
$ 4,00
$ 5,00
Q4 13
Q2 14
Q4 14
Facebook CPM

6. User Retention is a Problem
0%
10%
20%
30%
40%
50%
Month 1 Month 2 Month 3 Month 4 Month 5 Month 6
Active Users Per Month
Only 5% of all users still use an App after 6 months after install.

7. How Do I Fix This?
• Use all tools you have
• Guide them through the features
• Bring value with social connection
• Push Notification
• Email
• Retargeting
• Use valuable & personalized messages
• Analyze where & why users quit

8. Segment Your Users & Understand Funnel
E-Commerce
Games
• Install
• Registration
• Open
• Search
• View Category
• View Product
• View Deal
• Add to Cart
• Purchase
• Install
• Registration
• Open
• Tutorial
completion
• Level
• Virtual goods
used
• Purchase

9. Example: Games App

10. The Challenge
30 Days Audience In-Game Progress
Challenge
100
32
18
1
NumberofUsers
(indexed)
Actions Performed
Grow revenues by increasing
i) number of purchasing users
ii) revenue per user
Situation
Majority of installs had low 30
days retention rate.
Less than 1% did a first
purchase.

11. Custom Audience Segmentation Applied
1
2
3
4
5
6
7
8
9
10
11
12
Free Player
First-time
Purchaser
Frequent
Spender
Whale
Beginner
Intermediate
Pro
User
Profile
Spend Profile

12. Address Each User Segment Individually
Beginner
• In-active since 7
days
• Re-engage!
Intermediate
• No purchase yet
• Convert to 1st
purchase!
Whale
• Ran out of credits
• Recover spend
level!

13. 189% Return on Ad Spend for Cervo Media
All results measured by independent external partnerMAT by TUNE
“We started working with Remerge three months ago and we have achieved outstanding
results. They have proven to have an excellent product as well as an amazing team.
We definitely plan to rely on them in the future as part of our app retargeting efforts.”
Daniel Arroyave
Head of Mobile Marketing, Funstage / Cervo Media
Results

14. Pan Katsukis| E-Mail: pan@remerge.io | +49 151 61711577 | Twitter: @derpan | Remerge GmbH, Mühlenstr. 78, 10245 Berlin