#feedyourapp- San Francisco Breakfast Series
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Yvonne Chen's presentation on the app lifecycle.
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#feedyourapp- San Francisco Breakfast Series
- 1. Lifecycle Engagement Yvonne Chen, Localytics Senior Director of Product Marketing and Strategy
- 2. 2 Agenda The Opportunity Personalizing the App Lifecycle Predictive App Marketing #feedyourapp
- 4. 4 Nielsen & Comscore, 2014
- 5. 5
- 6. 6 Nielsen, 2014 APPS ARE INSTALLED ON THE AVERAGE US SMARTPHONE.
- 7. 7 25% THE PERCENTAGE OF USERS WHO ONLY OPEN AN APP ONCE. Localytics, 2015
- 8. 8 19% 23% 29% 42% 48% 68% 71% Forced social logins Privacy concerns Intrusive ads Bad UI/UX Freezing Complex registration Annoying notifications TOP 7 REASONS WHY PEOPLE UNINSTALL MOBILE APPS* *AS A % OF ALL RESPONDENTS. EACH PARTICIPANT MENTIONED THREE REASONS.
- 9. 9 Agenda The Mobile Landscape Personalizing the App Lifecycle Predictive App Marketing #feedyourapp
- 10. 10 10 The App Lifecycle Analyze usage • Powerful app analytics: funnels, retention, and segments • Profiles and demographics Grow and Retain • Automate marketing efforts • Measure ROI • Pre-emptively engage at- risk users Engage users • Push, in-app, and email messaging • Personalization • Dynamic campaign optimization Acquire users • Connect spend to LTV • Integrated with all major ad networks including Facebook, Twitter, and Google #feedyourapp
- 12. 12 App Store Optimization Gain visibility in app store searches Optimize your app store listing
- 13. 13 Organic Channels – Website Redirect Redirect mobile website traffic to your app
- 14. 14 Organic Channels – Email Encourage email subscribers to download your app 53% of emails are opened on a mobile device. Source: Litmus, 2015
- 15. 15 Organic Channels – Social Media Promote your app on social platforms
- 16. 16 Paid Channels – Mobile Ads Source: Litmus, 2015 Work with a mobile advertising company to place targeted ads in other apps
- 17. 17 NOT EVERYONE WHO DOWNLOADS YOUR APP WILL BECOME A USER.
- 18. 18 Source: Localytics, 2015 Of users only use an app ONCE.
- 19. 19 Paid Channels – Attribution Use an app analytics platform that partners with major ad networks and ad tracking partners to measure acquisition campaigns #feedyourapp
- 21. 21 Maximize user value through engagement • Segmentation • Channels to the customer • Push • In-App • Remarketing • Email #feedyourapp
- 22. 22 Sports Apparel App (your entire userbase) Segment your audience #feedyourapp
- 23. 23 3% of broadcast push messages are clicked 7% of targeted push messages are clicked 15% of users converted 54% of users converted BROADCAST TARGETE D Segment your audience vs
- 24. 24 Imagine an app with 100,000 users Segment your audience
- 25. 25 3% of 100,000 users = 3,000 opened messages 7% of 100,000 users = 7,000 opened messages 15% of 3,000 opened messages = 450 converted users 54% of 7,000 opened messages = 3,780 converted users Segment your audience BROADCAST TARGETE D vs
- 26. 26 Maximize user value through engagement • Segmentation • Channels to the customer • Push • In-App • Remarketing • Email #feedyourapp
- 27. 27 Users with push enabled have 88% more app launches Motivate inactive users to return to your app with targeted, carefully timed, and relevant copy Source: Localytics, 2014
- 28. 28 Increase your push audience, increase your success 52% of app users have push enabled on their phones
- 29. 29 48% of app users DON’T have push enabled on their phones Increase your push audience, increase your success
- 30. 30 DON’T ask users to opt in immediately after launching the app for the first time Be timely with your push strategy (first launch)
- 31. 31 1 2 3 Welcome users with a sequence of introductory screens
- 32. 32 THEN, ask them to opt in with a unique, well-designed in-app message Welcome users with a sequence of introductory screens
- 33. 33 In-app messages drive conversion Move users further along funnels to convert with beautiful, branded, in-app creatives 4X HIGHER In-app messages presented based on an event have conversion rates.
- 34. 34 Reaching existing users with remarketing Source: Litmus, 2015 Show current users ads based on how they’ve previously engaged with your brand Great for reaching the who opt out of push notifications 48% OF USERS
- 35. 35 Email – Cross Channel Marketing Give user richer, longer form content Source: Copyblogger, 2014
- 36. 36 Agenda The Mobile Landscape The App Lifecycle Predictive App Marketing #feedyourapp
- 38. 38 5 years ago… the world was awash in Big Data
- 39. 40 Data Scientists to the Rescue
- 40. 42 Still not fulfilling the promise of big data 50% of all data science projects fail
- 41. 43 Apps Create a New Opportunity Apps generating massive amounts of data AND have marketing channels embedded Advances in computing have made machine learning more accessible Users demand better experiences
- 42. 44 Keys to Successful Predictive App Marketing Define the specifics of the objective Take action via the app (via push, in-app msg, etc.) Establish Baseline and identify user patterns of user behavior and correlated characteristics
- 43. Define objective – Churn = users who have visited the app at least twice, but not in the last 30 days Predictive Churn Example for a Sports App
- 44. *Measured as % active users with no activity in past 30 days. Auto-segmented new users into the at risk buckets and sent personalized push messages to drive users back into the app Predictive Churn Example for a Sports App
- 45. Control Group Experimental Group Users 190,930 189,900 Returned 115,243 120,112 Churn %* 39.3% 36.8% Improvement — 6.6% Users Rescued — 4,928 *Measured as % active users with no activity in past 30 days. Predictive Churn Example for a Sports App
- 46. *Measured as % active users with no activity in past 30 days. Predictive Churn Example for a Sports App
- 47. Control Group Experimental Group Users 3,383,031 381,723 Returned 565,930 102,500 Churn %* 83.3% 73.1% Improvement — 14% Users Rescued — 38,644 *Measured as % active users with no activity in past 30 days. Predictive Churn Example for a Lifestyle App
- 48. 50 Predictive App Marketing Across the Lifecycle
- 49. 51 Summary Apps are the future- appification of the web Think of your app strategy in terms of a lifecycle Apps bring data and action together in a way that enables predictive marketing capabilities #feedyourapp
- 50. 525 2 Thank You
- 51. 535 3 Questions?
Hinweis der Redaktion
- I wanted to take you through some of the trends shaping the mobile space and more specifically Apps, but I also wanted to make sure that we shared some best practices around app marketing that you can put to use for your business today. Then I will give a sneak peek at where app marketing is going and talk a little about Predictive app marketing
- (Get ppl on same page.) There is more time is spent in apps than any other form of digital media. It’s amazing how mobile overtook desktop between 2013-2014 - and it’s not going back. Broadly speaking, we see mobile over take the desktop in 2013 and the gap has been growing since then. Yet, even more interesting is how dominant mobile apps are – commanding more than 50% of overall time spend engaged with digital media. This may also be something you have seen or are seeing in your business. If you haven’t yet, it’s likely that you will soon so it’s another reason to make mobile a priority.
- To enforce the growth of mobile, we have found that more time is spent in apps than on the mobile web- 60 minutes with apps v. 22 minutes on the mobile web to be exact. This presents a large opportunity for audience engagement.
- The app store is experiencing explosive growth. 48,000 app are downloaded every 60 seconds. With almost 50 thousand apps being downloaded every 60 seconds there is no question that apps are a dominant way for consumers to interact with businesses.
- What does this mean for individual phones? On average, there are 41 apps installed on the US smartphone. So think about what that means for your business – with the average phone having over 40 apps, there is steep competition for your app to stand out, to become an intregal part of your users lives. This is a highly competitive space, how is your app going to get noticed? First they need to download your app, and then they need to come back. We’ll talk today about how to do that.
- But first, why is this so important? You want to be one of those 41 apps. But ¼ of apps downloaded are only used 1x. And if your app does end up getting downloaded, your window of retaining the user is low – 20% of apps are only opened once. Now the good news is that users spend almost 10 minutes during their first interaction with an app – so you have a fair chance to win them over, but you need to nail that first experience. With all of the competition for users’ attention the consumer experience bar is high – users expect intuitive experiences that deliver exactly what they want, when they want it So how can you meet and exceed these expectations?
- It’s important to first understand why do ppl uninstall apps? The top reason is annoying notifications. And there are a lot of reasons why apps are not used, ranging from poor marketing to privacy concerns, to asking for too much from users too soon (i.e. forcing social logins). However, both of the 2 top reasons are within your control and you have the opportunity to make sure you get them right.
- Let’s talk about how you can get it right. Now that we understand the large mobile engagement opportunity in front of us, let’s talk about how we can personalize the mobile experience to drive engagement, and ultimately conversion from your users.
- Let’s talk about it in more recognizable terms and a common framework- the app lifecycle. If you’re a marketer you likely have thought about your user experience in the form of a lifecycle. It’s very useful to think of your mobile marketing this way as well. You want to look at how you acquire new users, engage those users in a way that encourages them to grow to become loyal customers that keep coming back to your app.
- Let’s take a deeper look at user acquisition.
- First things first- you need to think about the app store. I won’t spend too much time on this because this is an app development session. But, it’s important to do things like get your name right, outline the key benefits of your app in the description, create a great app icon, and get users to rate your app. Let’s talk about the things you can control. In this example, Runkeeper is focusing on app categories they want to dominate. They are clear in where they want to be found and what they want to do. In addition, the visuals they are using are a great representation of their product. They give u a feel for the app before u even download it. This is important because users need to feel comfortable with your app to know what they are downloading. You want to remove any barriers for download. By doing these things, this is how you can get found organically in app store searches
- The next thing you want to be able to do is tell where your visitors are coming from. Yahoo does a great job of this. When you visit yahoo from any mobile device, they send you a message to install the app. They redirect mobile website traffic to their app. The key here is to know where users visit you from and drive them to the best experience possible. Yahoo knows they can deliver a much more engaging experience through app than the mobile site. Even if you have a responsive website, direct people who visit your site on their smartphone or tablet to your app because apps are more robust and efficient. Think of the mobile website as gateway to your app -> funnel people to the best user experience.
- So how are we going to acquire new users? It’s helpful to think about your most engaged users. In this example, CVS is sending a message to their most engaged users- asking them to download the app. According to Litmus, 53% of emails are opened on mobile today and this number is increasing every year. 3 years ago it was just 8%. In 2011, only 8% of emails were opened on smartphones and tablets (a 500% increase in four years), incredible growth. We don’t see these trends stopping. Here from CVS, it is clear the value the user will get by downloading the app. Think about you- I check emails on my way to the office on the train. More than likely, your users are opening your email on a mobile device. Including the app download message while they are on their phone is a perfect experience. In addition, think about your email subscribers. Your existing email subscribers represent a highly engaged audience who want to hear from you. Email them and tell them about your awesome new app and bump up those downloads.
- It’s all about your engaged users and creating more ways for engaged users to get to the next level. People on social channels need opportunities for engagement with your app. Your existing social circles are a great place to recruit new users Find a fun and interesting way to promote your app on social platforms Do something fresh that will show the human side of your brand Here, Buzzfeed is sprinkling in content to get more ppl to engage with the app.
- We just talked about free marketing channels. If you want to invest dollars in acquisition, there are many mobile networks that can help you. FB takes the lion’s share of ad dollars to drive users to apps, but there are other channels to experiment with as well. Place paid mobile ads on ad networks and through ad tracking partners. Paid channels are another great way to drive people to the app.
- But be careful, especially with paid. Not everyone who downloads will become a valuable user.
- Don’t forget- 25% of them are going to use the app once. That is even less if you are paying for those downloads.
- When you’re thinking about paid channels, know what you’re getting into. We talked about some of the dangers. Stay away from vanity metrics like downloads. Focus on customer lifetime value and understanding who your valuable users are. How can you do this? You do this with a great analytics platform. Attribute all the places where you do spend money.
- Acquisition is definitely important, but if you’re not nurturing users the right way, you’ll never sustain that acquisition growth.
- So you’ve acquired great users- how do you maximize the value? Any good marketer knows that segmentation is the answer.
- If you’re a sports app, you know who your users’ favorite teams are so you can deliver more tailored messages.
- Tailored messages make a difference and that carries down the funnel. There is a huge difference in converted users, with conversion tripling and click through rates doubling. And we found this across 1000s of apps.
- Let’s look at a quick example to make it more real. Imagine an app with 100,000 users.
- 3000 messages opened v. 7000 with a targeted message. Almost 4000 users convert v. just under 500. Segment your audience.
- So you’ve acquired great users- how do you maximize the value? Any good marketer knows that segmentation is the answer.
- Push messages are a great way to engage with users when they are outside your app experience. Push marketing is a great way to bring people back to your app to get them to read a piece of content, buy something, or add something to their wishlist. In-app messages are a great way to engage users while they are in your app. Nudge to complete an action they started, but briefly paused, or deliver them a special offer once they add something to their cart. Reward them for being an app user.
- A common misconception is that everyone disables push notifications, but 52% of users do have push enabled on their phone. This again is a marketing opportunity.
- The flip side of that though is 48% of users do NOT have push enabled. How do u stack the deck in your favor? How do u get a bigger piece of the donut?
- Let’s look at a few examples. Here is an app that asked a user to enable push notifications immediately after the user launched the app for the first time. Now we know that only 25% of apps are used once. Do you really want to use up that first experience with an intrusive push message that adds no value to the initial user experience? You must be timely with your push strategy.
- Now let’s take a look at a great example. Retail me not orients the user and delivers a more personal message. They ask the user to specify his or her preferences and favorite stores.
- Then they ask them to opt into push messages with a well-designed in-app message that is on-brand and more friendly and relevant.
- Now let’s take a look at in-app messages. In-app messages don’t get as much attention as push, but they help ppl move through the app experience. They are designed to increase session time, encourage conversions, and move people further down app funnels They work best when triggered off of specific events and we’ve seen 4x higher conversion rates. Apps that send in-app messages show 2-3.5x higher user retention and 27% more app launches than those apps which do not send in-app messages Best practices include: Segment audience by profile and behavioral attributes Analyze your funnels to determine the most important in-app actions Create in-app campaign to correspond to conversion steps Use a compelling creative that is well branded, includes visuals, and a large CTA button A/B test layout, colors, CTA, etc. Use marketing automation to “auto-enroll” new users Measure the right metrics (by impressions, clicks, and long-term LTV changes)
- It’s always cheaper to keep a user than find a new one You have probably used remarketing tactics. Remarketing is the practice of targeting customers with advertisements outside of your website or app, based on how they’ve engaged with your brand or business. Remarketing is a great way to reach users who have opted out of push notifications. It’s another channel to your customer. Remarketing helps you Maximize the LTV of all your users Reach users outside your app even if they have disabled push Drive more conversions from existing users (upsell) Re-engage lapsed users Best practices include (very similar to in-app messages): Set specific retention and nurturing goals Segment your audience Incorporate visual branding and use eye-catching colors and imagery Carefully choose your offer and highlight something new (users have existing relationship with your app) Finesse ad copy to be clear, concise, compelling Deep-link to app content/features Include a relevant CTA (like Shop Now, Use App, Read Now, etc.) Measure, test, improve, and optimize
- Let’s look at an email marketing example. Email is still a dominant form of communication in the modern world Now Boston had a rough winter. The company shown here sent a personalized message based on the user and used that to get more engagement. Knowing when to use what channel is important. Email is great for longer form communication. It’s good for engaging app users with richer, longer form content outside the app and deepening relationships Push and in-app are shorter communication channels. Best practices include: Send to targeted audience Personalizing content and using dynamic content that changes depending on recipient Using strong visuals and CTAs Timing your email around other communications to app users
- Now that we’ve talked about mobile marketing more in depth and how to use it today, let’s talk about new marketing tactics- specifically using predictive capabilities to forecast engagement.
- Predictive capabilities are a great way to keep users engaged.
- 5 years ago ppl talked about big data and using data to know everything about users. Now the situation is- what do we do with all this data?
- There was a big rush to hire data scientists, hire as many as we can. Sadly most of those failed. We have all this data, but what do we do with it? We want scientists to crunch through all these numbers to come up with actionable insights. Many companies create a model that is updated every month- which customers are at risk and why? Problem is that it isn’t fast enough. You get initial improvements, but ultimately you cannot keep up with the changes because the market is too dynamic.
- There was a big rush to hire data scientists, hire as many as we can. Sadly most of those failed. We have all this data, but what do we do with it? We want scientists to crunch through all these numbers to come up with actionable insights. Many companies create a model that is updated every month- which customers are at risk and why? Problem is that it isn’t fast enough. You get initial improvements, but ultimately you cannot keep up with the changes because the market is too dynamic.
- Data science projects haven’t produced the right outcomes. When polled, orgs have not been happy with data science investments. They have begun to understand customers and which ones churn and created programs. But the next month things change and there are new at-risk customers. What’s the right frequency? Monthly? Weekly? That is too slow. We need to get closer to real-time.
- Data science projects haven’t produced the right outcomes. When polled, orgs have not been happy with data science investments. They have begun to understand customers and which ones churn and created programs. But the next month things change and there are new at-risk customers. What’s the right frequency? Monthly? Weekly? That is too slow. We need to get closer to real-time.
- Again, looking at apps- apps are changing everything. As we saw when tablets came out, the overall experience bar was raised because consumers and business owners were engaging with new experiences on tablet. This upped the level of experience required just to compete. Over the last 5 years, every month there are improvements in computing and machine learning. There is still roles for data scientists, but now they can be used to create algorithms that can deliver in real-time. Users need a better experience. Technology is making that data actionable. Apps have a ton of data and marketing channels are now embedded in the app. With apps you can take the info you have, match it against the algorithms data scientists create and then act in real time. This is why apps are different and will deliver on the big data promise. Apps were emerging, data sets were discrete, look it up Articulated the product marketing organizations role versus the marketing organization These orgs are coming together around the app because the core marketing channels are actually part of the experience
- How will apps deliver on this promise? First, we need to define the specific of the objective- in this case it’s churn. What’s the company’s definition of churn? It will be slightly diff for each app-what’s right for your app? They considered churn to be someone who visited the app at least 2x, but didn’t return in last 30 days. 2. Establish the baseline. You need a data set of past behavior- 3-6 months can be used to establish a baseline to identify patterns. With this churn analogy, understand which of your customers have left- what is unique about those who churned and your most engaged users? 3. Lastly, take action in the app. It’s great to predict what future state of customer is, but u need to take action.
- Let’s take a look at an example of a customer we worked with at Localytics. This is a sports app. They define churn as ppl who visit app at least 2x, but not for last 30 days. Once we have the definition set, we look at their customers over past 6 months and group users into 3 churn buckets- low, medium and high.
- 3rd step- We then look at new users and start to auto segment them based on their behaviors. We segment them into one of those 3 buckets. Every new user who downloads the app gets put into these buckets. The apps that we are dealing with have millions of users. A 2.8% point decrease in churn may not seem like a lot, but represents 10’s of thousands of users monthly. We saved 2.8% more people than we would have before. 2200 additional would have churned 70,740 versus 65,700 – 5,000
- Let’s look at the results here. We have a control group and experiment group. If we get into the churn rate, we see a 6.6% improvement in the experiment group. People in the high risk bucket- we experimented with different combos of push and in-app to get them to take actions that were similar to their most engaged users. For this app, most engaged users logged in just prior to their favorite team’s match. For the experimental group, knowing the behavior of their most engaged users- the app sent users push messages based on their behavior and preferences before a match – to deliver a more engaging experience. By getting folks to display this new behavior that wouldn’t have otherwise occurred, the sports app saw a 6.6% reduction in churn.
- What does that 6.6% mean in terms of dollars? 5000 users were saved. They calculated their ROI based on the cost to acquire new users. What would it have cost them to acquire 5000 new users at $3 per head? They also looked at the ad revenue they receive from an engaged user that continued to visit the app. They combined the cost savings with the ad revenue and got a total value of $18K over a 1 month period. This value saved multiplies over months. The apps that we are dealing with have millions of users. A 2.8% point decrease in churn may not seem like a lot, but represents 10’s of thousands of users monthly. We saved 2.8% more people than we would have before. 2200 additional would have churned 70,740 versus 65,700 – 5,000
- We did this with other apps as well. A lifestyle app saw a 14% reduction in churn. The sports app is not an outlier. We are seeing this kind of predictive methodology apply to businesses that want to reduce churn.
- Now we talked about Prediction as it relates to retention. What about predicting which product should you put in front of users that are likely to purchase? These predictive capabilities apply across the entire lifecycle. 3 questions I know the answer to – You talked about app store optimization, how can I get better ratings in the app store? NPS score- One of our more progressive customers, one of the big four US professional sports leagues does the NPS survey. They ask their users on a scale of 1-10 how likely are u to recommend the app to someone else? They then focus on the promoters (9-10) and ask them at a later point to rate their app again. They stack the deck in their favor. They ask the ppl most engaged to rate their app. That is a smart way to improve app store ratings. Focus on asking ppl who are most engaged and at the right time. Don’t ask them in the middle of doing something in the app. Get the timing right. App store optimization tips include: Give your app a unique name and include a few important keywords Outline the benefits of your app in the description (be explicit and clear) Create a well-designed, recognizable app icon (this is what appears in the app store searches along with your app title) Include promotional screenshots that show your app in action Motivate users to leave good ratings and reviews (the better rated your app, the better it will rank in app stores) Length of message What is the right frequency? It’s important for us to not abuse the channel to the customer. If you think about spam and email, marketers have the responsibility to communicate responsibly. Over 41 apps per phone- if all those apps are spamming, no matter how targeted they will fail. Always start. Less is more. As you get to higher frequency, make sure you match with granular segmentation based on analytics and data. This is an intimate comm channel- phone buzzing in pocket. Use it wisely. Geofencing? You can use beacons. Don’t get locked into a solution. Focus on the challenge and what behavior you want to happen. Open to different ways to be solved.