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CPD is Dead, Long Live Loyal App Users!
Posted by: Viki Zabala
June 21, 2011
App clicks, downloads and launches can be very misleading metrics. Measuring ROI beyond downloads involves evaluating an app user’s loyalty. How many times do your users return? Have they made a purchase? Did they register? If these are unanswered questions, then you are NOT measuring your ROI.
Billions of app downloads and a culture reliant on apps is presenting marketers with an increasingly dynamic environment to promote their apps. In-Stat projects 48 billion app downloads by 2015 due to the growing number of touchscreen-equipped smartphones while a recent survey by MTV reports that 83% of respondents are “addicted” to their apps.
This mobile explosion requires marketers to refine their mobile app promotion approach and target downloads by loyal users. Why? Because loyal users use apps repeatedly, make purchases, and spread the word on your behalf. It is loyal users on whom you build your business. A download, or even an app launch, does not mean that you have a loyal user.
So what is a loyal user? A loyal user is someone who has taken an action that can be directly tied back to your ROI. Depending on your business, a loyal user can be defined differently. It is up to you to define your loyal user.
If you’re a publication, a loyal user might be someone who registers and becomes a member. If you’re a deal site, a loyal user may be a customer who makes a purchase. If you’re an app developer who relies on in-app ad revenue, a loyal user may be someone who opens your app at least five times.
Rapid and sustainable app-business growth is all about finding loyal users. However, none of the ad networks have a viable method for understanding how to obtain loyal users.
Here at Fiksu we will help to set benchmarks and performance goals based on your loyal user profile and then tie in monitoring, real-time optimization and reporting to create a full cycle app marketing euphoria.
Let’s crunch some numbers and see why loyal users are a critical metric. As depicted below, a typical reporting system would only measure the basics, with a heavy emphasis on cost per download (CPD). On the other hand, if Fiksu for Mobile Apps had a hand at the data set, it would reveal the ugly truth behind this marketer’s ROI.
Pretend my app was created to further my branding efforts and was based on increasing my registrants. In this model, I would like to know: How many of my downloads turned into registered users? – Ah, yes! This is what we call “Loyal App Users”, as the user is taking an action that can be directly tied back to my ROI.
Exhibit A: The Ugly Truth Behind CPD Metrics without Considering Loyal App Users
In this case, the loyal app user metric is registrations. While Network “A” may seem to have the best CPD and volume combo, the stark reality is that these are the most expensive subscribers to acquire and puts the marketer in danger of a negative ROI.
Transparency will be key in measuring and optimizing users through the mobile app funnel as the market becomes noisier, more fragmented and more complex. This is especially apparent in the Android marketplace where there is less visibility into the quality of users due to less well developed reporting and tracking capabilities.
The Fiksu for Mobile Apps platform is the only loyal user acquisition platform reaching across the entire mobile ecosystem providing the necessary insights and data to monitor your campaign’s true ROI success.
No more excuses! Beef up on your mobile metrics and define your loyal user. Find 13 other Best Practices for Growing your Mobile App Business in our free eBook.