3 tips to optimize your App Marketing spend and grow conversions
Ecommerce companies have seen a slower quarter. According to Business Today, investors in India have turned cautious about placing big bets on ecommerce start-ups and the party is clearly over. The total VC money invested and the numbers of deals have dropped from a peak of 43 deals worth $831 million in March 2015 to just 24 transactions worth $112 million (Rs 730 crore) in less than a year according to Economic Times. In a similar state, brands from leading ecommerce markets like SEA and the Middle-East are looking at tighter marketing budgets and greater value for their mobile ad spends (the focus is on metrics like In-App user engagement and conversions).
To cope up with shrinking budgets and bigger marketing goals, you need to try and use your marketing channels effectively.
Here are 3 powerful ways to optimize your marketing channels and grow In-App conversions.
1. Use owned channels first
The cost of engaging users on channels like Push notifications, sms, email, In-app message is much lower when compared to Display and Social. You can start by prioritizing channels that come with lower engagement costs. Personalized messaging across these channels could help you engage upto 25% of your users. Use paid display/social ads only to reach users who have not been engaging with you on free channels and optimize your display ad spends.
2. Block inactive channels
It is important to determine active channels for every user. A careful look at their online behavior and past engagements will help you understand your users’ preferred channels for engagement. Activate the most active channels and block inactive channels at a user level. For example, if I have always opened your sms but never responded to display ads, send me an sms every time you want to reach me and drop me out of your display ad campaigns.
3. Treat uninstalled users differently
It’s meaningless to retarget me if I have uninstalled your app. You might want to put me into the re-engagement/download segment instead. Track uninstalls with a silent Push. Use display ads effectively by tailoring it to the user’s present state – active, inactive, uninstalled user.
1) Run retargeting display campaigns for active users to prompt conversions.
2) Target inactive users with relevant offers and re-engage them.
3) With aggressive re-download campaigns, bring back uninstalled users.
4) Show relevant ads for every user and make good use of your display spends.
Wondering how you can action these smart strategies? Remember these 3 things:1) Get a cross-channel Mobile Marketing Automation Platform that will choose the right channel at the right time for every user. 2) Use a single platform for multiple channels, it is easier to optimize your spends that way - like this infographic below. 3) And finally, the platform must have a robust feedback loop, so that user activity and online behavior is gathered and assessed to determine the next best action on a continual basis.
We have implemented similar App marketing strategies for leading ecommerce Apps. One online retailer got 3x higher conversions by using just his Free channel before paid! Download the case study below.
I would love to hear about how you optimize your marketing mix, do share your stories below.