Apps Losing Customers on Path to Purchase

October 31, 20195min

Opportunities to turn app users into paying customers are being missed, a new report has indicated.

The findings by mobile attrition and analytics firm AppsFlyer show that marketers are missing their chance when it comes to converting, with the average share of paying users lower than 10 percent based on app install-to-purchase ratio (only 3-5 percent in gaming apps and double that rate in non-gaming apps).

In a space dominated by free-to-install apps, where actual value is tied to post-install in-app activity and share of paying users, the study examined over 12,000 apps with a user base of over 2.3 billion users. Findings determine the importance of granular in-app event measurement, and provide insights to improve campaign effectiveness and increase the percentage of app installs that lead to a purchase.

The rate of paying users is lower when marketers don’t measure, and therefore optimise for, enough in-app events. On average, the report found that marketers are measuring only 4-7 events per app, depending on the vertical, but performance based on the share of paying users is much higher, hitting its peak at 16-20 events, or 26-30 in the gaming space.

In-app events contain specific information about actions taken using an app. For example, purchasing a product, booking a flight, or – in a gaming context – completing a game tutorial, or passing level 10.

In fact, almost 60 percent of apps measure revenue events, but the second and third most popular events – Login and Registration trail far behind, as they are measured by only 30 percent of apps. Among Gaming apps, the average number of apps measuring for Level Achieved is 42 percent, while only 19 percent of apps measure Tutorial Completion, significantly lower than the 70-80 percent that measure revenue.

Since app performance is significantly higher in apps that measure events throughout the customer cycle, closing this gap can certainly lead to better results.

Across nearly all verticals, performance is significantly higher in apps that measure granular in-app events, rich with information about the action taken, rather than standard events that only contain information about whether the action was taken.

For example, granular in-app events measured for purchases that include data on the content purchased, specific content ID, currency used, value of the purchase, customer user ID, final purchase, and more, give more insights into conversions within an app.

Overall, the report found, granular event measurement helps marketers make smarter decisions and ultimately drive higher  user retention rates.  Since retention is highly correlated with revenue, it is critical that marketers optimise to encourage ongoing usage of their apps and increase the likelihood of purchases and the lifetime value of their users.

Shani Rosenfelder, Head of Mobile Insights at AppsFlyer, said: “Although performance app marketers have shifted their efforts from focusing on driving installs to post-install measurement, most are still measuring only a fraction of the in-app activity they could be.

“Converting more users to paying users and maximising their revenue potential requires measuring events that span the full conversion cycle and all significant milestones in the consumer journey, allowing marketers to identify gaps and optimise accordingly. The insights that can be drawn from this data are vast and can help maximise user lifetime value by informing smarter acquisition and re-engagement decisions.

“With all of the information marketers have at their fingertips, it is critical they invest in an infrastructure that allows for more granular measurement, as well as in advanced tools, tech and people that are equipped to draw the most actionable insights from the data without compromising productivity.”

 


Paul Ainsworth

Paul Ainsworth

Experienced Irish journalist and former newspaper editor now helming executive editorial duties with Customer Experience Magazine, the UK's premier online source for Customer Experience news, features, and opinion, along with its sister site, CXM World.




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