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APP USER
ENGAGEMENT
Contents
Introduction .............................................................................................. 01
Chapter 1
Exploring Mobile Engagement Techniques
............................................................. 03
Chapter 2
Leveraging Personalization to Better Engage Users
................................................... 07
Chapter 3
Engagement Campaigns Use Cases for Every Vertical
............................................. 1 2
Chapter 4
5 Tips For Measuring Your Mobile Campaigns
.......................................................... 20
Chapter 5
An App Marketing Game Plan for Your Brand
........................................................... 26
References ............................................................................................... 28
Introduction
More than 50 percent of Americans own a smartphone1. 800 apps are downloaded
every second from the Apple App Store2. Despite these remarkable numbers, which are
testimony to the popularity of mobile and its prominence in consumers daily lives, Localytics
data reveals that many apps nearly 22 percent are never used more than once3.
Having a great product with compelling, useful, entertaining & informative features & content
is no doubt the number one way brands can do in order to get people to use their app.
However, data from Nielsen reports that US smartphones have an average of 41 apps
installed a 32% jump from last year4.
With so much competition, many brands have found they still need to go one extra step to
stay top of mind for users who are faced with an abundance of choices.
With such bleak retention rates, its not enough for brands just to have an app Brands also
need to enable customers to engage with their app in meaningful ways towards
monetization.
Whether a brands business model is driven by in-app purchases, paid subscriptions or
in-app advertising, the key to unlocking app monetization lies in engagement and
personalization. To make this happen, you need deep insights about your users, including
how you acquire them, how they interact with your content, and every step they take
01
Introduction
through the conversion funnel. For digital marketers, this isnt rocket science - its Marketing
101. When it comes to mobile, things arent as easy. Fortunately, during the past five years, the
industry has made huge strides in gaining a deep understanding of mobile users. There are
app user engagement techniques like in-app messaging and push messaging that can help
brands cultivate relationships with their users so they will use their app more frequently and
spend more time engaging with the app. When done properly, in-app messaging and push
messaging will drive users to the most compelling app features and help them establish optimal user habits within the app ultimately leading to higher lifetime value (LTV).
Top-notch mobile analytics are the foundation for brands to achieve this. The discovery of an
apps best features is accomplished through user behavior analysis, tracking in-app actions
completed and correlating those actions to users with the highest customer lifetime value.
Additionally, analysis of behavior leads to the identification of segments of users who are
interested in particular app screens and features like particular news content and lays
the groundwork for personalized and more impactful marketing campaigns.
02
Introduction
Chapter 1
EXPLORING MOBILE ENGAGEMENT TECHNIQUES
Chapter 1
EXPLORING MOBILE ENGAGEMENT TECHNIQUES
Lets take a look at the mobile user engagement options were focusing on in this eBook:
Push messaging and in-app messaging.
You are probably familiar with push messages, which are also commonly referred to as push
notifications. An important function of push messages is to drive users back into your app if
they are not actively engaged with it.
04
See the table below to learn some of the differences and similarities between the two.
IN APP MESSAGING
Sent
In the app
Uses
Value
Set up
Features
Format
Function
05
PUSH MESSAGING
The key to
successful customer
engagement is to
think about
personalization and
context.
06
Chapter 2
LEVERAGING PERSONALIZATION TO BETTER
ENGAGE USERS
Chapter 2
LEVERAGING PERSONALIZATION TO BETTER ENGAGE USERS
With so much discussion in the industry about the value of personalization in marketing, its
worth taking a moment to elaborate on what we mean when we use that term.
Context is important. An in-app message or push message should be relevant to the user
because it is related to what the user is doing now or has done in the recent past.
When we talk about personalization, while every marketers dream, we dont mean down to
the individual person level. In other words, we are not talking about the ability to market
specifically to Emily, a 24-year old Bills fan in Buffalo NY. Rather, we are describing the ability
to scale contextual messaging to thousands or millions of people like Emily Bills fans,
women ages 18-24, app users located in Buffalo, NY - based on interests proven through
their in-app actions.
MARKET TO
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Segments
A segment is a group of users with
distinguishing characteristics who can be
categorized into marketable, contextual
groupings, through analysis of their
common in-app actions, acquisition
sources, devices and operating systems.
09
EVENT NAME
10
Additionally, depending on your app category, various app features will lend themselves to
different events to be tracked. Here are some vertical-specific event ideas:
VERTICAL
News apps
eCommerce apps
Social apps
No matter what kind of app you have, event-tracking should help you achieve two things:
1
2
First, events should build upon each other in a sequence to create the conversion
funnels you envision for your users such as a product screen view, adding a
product to a shopping cart, and a checkout.
Second, tracking events should help you identify what you would qualify as your
ultimate conversion event such as an in-app purchase.
App users who repeat this event most consistently over time provide the highest lifetime value
(LTV). The nature of the app will also help determine what is its ultimate conversion event. For
many apps, like games (which are often free), that would likely be an ad click. For a health and
fitness app, total pounds lost would be a measure of engagement with the tool that indicates
customer lifetime value better than other metrics. Using an analytics solution like Localytics, you
can set a dollar value for your event and track it over time no matter what that event is or how
you define lifetime value for your brand.
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Chapter 3
ENGAGEMENT CAMPAIGNS IDEAS FOR EVERY
VERTICAL
Chapter 3
ENGAGEMENT CAMPAIGNS IDEAS FOR EVERY VERTICAL
You now have a good understanding of what in-app messages and push messages are, as
well as how to personalize these messages with context, events, attributes and segments.
We are now ready to create campaigns to engage with customers. We have collected nine
tried and tested engagement campaigns; five that work across every app category and four
industry-specific engagement campaigns for push messaging and in-app messaging.
NPS Survey
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14
Earn Rewards
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4 INDUSTRY-SPECIFIC CAMPAIGNS
News Apps
For news apps, your monetization goal is two-fold. First, you want to drive ad revenue. To do
this, you need to increase time users spend in the app. With targeted push messages, you
can pull users back into the app toward content they have previously shown interest in. Secondly, you may offer paid subscriptions. Nudge users down the purchase funnel toward a
paid subscription upgrade with in-app messaging.
Push Campaign
Say you have identified a segment of users who have shown interest
in sports news through an articles read event. Alert those users of
todays top sports news stories with a push message campaign.
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Retail Apps
In addition to all other channels, mobile is yet another valuable customer touch point that will
help you drive more lifetime value out of that relationship. As a retail company your objective
is to drive in-store purchases, and you can help users do just that with the help of the app.
Push Campaign
A retail store can send a one-day-only 50% off all new
merchandise offer to frequent shopper club members. For those
who arent in the frequent shopper club, the store can in parallel
target non-members with a campaign that encourages them to
login to the app and join the frequent shoppers club in order to
take advantage of the discount.
17
eCommerce Apps
Push Campaign
Whether its a fishing pole or a pair of high heels, abandoned
items left in the cart is pressing issue for eCommerce companies.
Push messaging truly shines in this use case because of its ability
to communicate with these users outside of the app.
Nudge forgetful, but high value, users out of limbo with a push
message campaign offering free shipping or a discount
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Games
Since mobile games are generally free, your goal is to drive ad revenue by increasing
session length and time spent playing the game in your app. You can achieve this by
creating an engaging app experience with the game and by pointing out the most interesting
aspects of the game to users whose in-app behavior suggests they are missing out.
Push Campaign
A push campaign is a great way to encourage users who have
not played in a while to come back and play again or to remind
them when it is their turn. It is also an effective way to introduce
your new games to your audience.
19
Chapter 4
5 TIPS FOR MEASURING YOUR MOBILE
CAMPAIGNS
Chapter 4
5 TIPS FOR MEASURING YOUR MOBILE CAMPAIGNS
As we saw through practical examples in Chapter 3, both in-app messages and push
messages can be a valuable tool for both customers and businesses. By measuring your
campaign efforts, you will be able to better understand and optimize your customer
engagement. Here are five best practices to follow for measuring your mobile campaigns.
Lets say a department store with an iPhone app is launching a push messaging campaign to
promote a highly sought-after new line of handbags. For this promotion, the retailer will send
push messages to users who have previously shown interest in handbags to pique their
interest in a 20% off coupon off their first in-app purchase of the new line. The goal is to drive
in-app purchases of the handbags.
The retailer runs an A/B test, sending at least two versions of the campaign to significant
samples of its target audience to see which message yields more conversions:
21
20% of those customers who received Message A took the first step and opened the app
while 15% of those who received Message B took the same action.
At first glance, it seems that Message A wins the contest, because of its higher open rate.
But the contest is not over yet; the retailer wants users to make an in-app purchase. If you
were only tracking app opens from this campaign, you would continue to invest in Message
A which may actually have a lower conversion rate to in-app purchase than Message B.
Because of this unknown, its critical to look at the full picture.
Have a clear goal in mind with your campaign. Like all good marketing, app marketing should
start with your short and long-term goals in mind, and the metrics you pay the most attention
to will be dependent on those prioritized goals. Are you looking to drive in-app purchases, or
are you looking to increase time spent in the app?
We now know its important to think beyond app opens and to track conversions. But
between the point of app open and the point of conversion lies a great deal of opportunity
for optimization.
22
Low Impressions
If your metrics indicate low impressions, you need to broaden
the reach of your campaign. In particular:
If your in-app message campaign is triggered by app opens,
think about driving more app opens through a push
messaging campaign.
If your push message campaign is seeing low impressions, it
is likely a case of low monthly active users (MAUs) and you
may want to crank up your user acquisition efforts.
If your campaign is triggered by an in-app event, you need to
evaluate whether or not the audience, which could be
relatively small, is achieving a sufficient conversion rate and
LTV to validate the campaign. If not, you may want to redirect
your efforts to larger segments.
Low Click Through Rate (CTR)
If your metrics indicate a low click through rate, consider the
following:
Design performance: Does the ad creative on your in-app
message show up blurry or warped on certain devices or
operating systems? Investigate further.
Ad copy: The text, and even the translation to other
languages, could potentially use improvement to more
clearly nudge users towards a call to action.
Once you have your campaign up and running, A/B test your
copy and creative to drive more clicks and conversions. Similar
to other marketing channels like banner ads, landing pages and
email, simple ad copy tests like comparing the effectiveness of
Buy Now and Checkout on conversion buttons can deliver
major results.
23
Monitor how interest in your campaign trends over time. As per the example chart below, an
initial spark of interest and conversions may happen in the beginning of your campaign,
especially for in app messaging campaigns triggered by app opens. But once less frequent
app users begin to see the campaign, clicks may trail off after a few weeks, indicating it is
time for a refresh.
Finally, the most effective way to know if a campaign is successful is to compare the lifetime
value of app users who were impacted by the campaign against those who did not. In your
analytics, you can set a value for every subscription, product purchase, ad view, or time
spent in app. Next, create an event for Seen In App Message with an attribute for the
specific campaign. When reviewing your lifetime value report, filter the report with this
information to evaluate whether your app engagement strategy is translating into long-term
value for your brand.
24
If youre a Localytics customer, once you have set up lifetime value tracking for your app you
can head on over to the Monetize tab to analyze your lifetime value report.
To see how your app marketing efforts impact your lifetime value, apply a filter to the report.
In this case, we created a segment for users who saw the in-app message.
Now you can see the impact of the in-app message - a 12% lift in lifetime value!
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Chapter 5
PUTTING THESE LESSONS INTO PRACTICE
Chapter 5
PUTTING THESE LESSONS INTO PRACTICE
App user engagement strategies like in-app
messaging and push messaging can drive more
lifetime value for brands and more delightful,
informative and useful app engagement
experiences for consumers by increasing
awareness of an apps best features.
Push messaging is particularly great for
re-engaging latent users, while in-app messaging
can pull engaged users further into your app
ultimately and towards conversion. Taking into
account the context users will encounter your
messages is a good starting point for more
effective marketing campaigns. Additionally, some
Ultimately, brands
looking to monetize
their apps will find
that robust user
engagement and
personalization can
lead to increased
conversions, revenue
and lifetime value for
your brand.
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References
1 - http://pewinternet.org/Reports/2013/Smartphone-Ownership-2013/Findings.aspx (pg 1)
2 - http://www.apple.com/pr/library/2013/05/16Apples-App-Store-Marks-Historic-50-BillionthDownload.html (pg 1)
3 - http://www.localytics.com/blog/2013/localytics-app-user-retention-data/ (pg 1)
4 - http://thenextweb.com/insider/2012/05/16/nielsen-us-smartphones-have-an-average-of41-apps-installed-up-from-32-last-year/ (pg 1)
5 - http://www.information-age.com/technology/mobile-and-networking/2162288/shoppersto-redeem-10-billion-mobile-coupons-this-year------research?goback=%2Egde_4862881_
member_215803984#%21 (pg 15)
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References