The world of mobile apps has evolved rapidly since its inception in 2008. With easier access to smartphones, the app industry has seen a steady popularity, generating huge revenue for app developers around the world. Over time, the competition has intensified and therefore, app developers are constantly on the look for innovative app marketing tactics to encash more profits.
One of the miscalculations that novice web developers make is assuming that their app would make a lot of money if more people downloaded and installed it. Hence, developers focus their efforts on multiplying the blanket cover of their users. In the process, they miss the trick to marketing their app to multiply the profits.
While downloading an app is crucial, developers need to direct their efforts to exploring ways to retain their existing customers, and make money out of them. In-app purchase and regular usage of the app are strategies to generate revenue from an existing app.
It is, thus, important to understand the behavioral pattern of the high-value users of an app to design better marketing tactics.
Who are high-value users?
Before taking the conversation any further, it’s important to understand or define high-value users for an app. Well, high-value users are the esteemed section of app users who have made in-app purchases or visited the app consistently over the last thirty days and thus, generated revenue.
High-value app users are engaged in an app four times more than an average user. While high-value communication app users are five times more engaged than average users.
Therefore, app marketers should focus more on high-value users for greater generation of revenue. Moreover, to increase the usage of an app among average users, marketers use retargeting campaigns, different engagement programs, rewards and push notifications.
The highlights of the report
Refer to the State of Mobile Acquisition” report, published by the reputed global technology marketing company RadiumOne, which gives a detailed report on the behavioral patterns of high-value users of an app.
The firm has analyzed the app usage trends on over 100 million tablets and smartphones to compile their report. The report advocates companies and agencies to use mobile data information for marketers to multiply their revenue. By tracking mobile data, they have the opportunity to find more high-value mobile users both through their apps and outside them.
High-value users show unique signals in and outside of their app. Knowing these signals, marketers can double their high-value user base. The effective use of this marketing tactic can reap high profits for marketers.
The key findings of the report –
High-value app users drive 85% of app revenue
The high-value users engage four times more in an app than an average user and drive almost 85% of the revenue.
High-value users are only 17% of the total user base mostly concentrated in the sectors of sports, retail, book/music and communication apps.
A detailed breakup of app usage
Sports apps have the highest percentage of high-value users, which is 28% while communication apps register 16%.
Music or book apps generate 99% of their revenue through high-value users, with the percentage of high-value users being 18%.
Unique signals in high-value users
There are a number of detailed observations that have been noted down in this report. By keeping in mind these unique behavioral signals among retail high-value users, marketers can design campaigns that can double this esteemed set of users.
Observation No.1
It is seen that retail users in general are loyal to a smaller number of shopping apps. It is seen that an average retail app user has three shopping apps while a high-value user has only one.
Inversely, high-value sports app users have more number of sports apps installed in comparison to an average sports app use
Observation No.2
It is also observed that high-value retail app users have 45% of lifestyle apps in comparison to average users of the same category.
Lifestyle apps include apps for weather, dating, fitness, astrology, maps etc. These users of apps access them on a daily basis.
Observation No.3
High-value retail users are not fans of social games and treat their phones strictly as a shopping tool instead of a gaming platform. However, an average user often has 62% more social gaming apps in their mobile phones. This shows that your high-value user prefers phones more for functionality than fun.
Observation No.4
Of the retail app users, 18% are high-value users. They have made a purchase within the last month.
However, when the signals of high-value retail users are applied on the total retail user base, there is an additional 28% who have the potential to be high-value customers. The signals that are reviewed are –
Apps installed
Ads clicked
Website visited
Three Key Takeaways
The report not only helps marketers identify their existing high-value users, but it also enables them to find ways which would help them accurately target more potential high-value users. The key strategies are given below :
Focus on the section that generates the majority of the revenue – For this in-app analytics are a must. It aids in identifying the high-value users, their characteristics and behavior.
Review signals outside your own app – Review closely the data from the entire app ecosystem including third-party websites and apps to tap on the real high-value users for your app.
Strive for more potential high-value users – Pick potential high-quality buyers, by employing the ideas of web and mobile advertising campaigns and in-app purchase.
Developing app marketing tactics for high value users is very important as it allows developers to identify the main section of users who are generating the bulk revenue. However, analyzing the rest of your user-base can be a key in the multiplication of potential high-value users.
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