With all great content—movies, originals, documentaries, sitcoms, regional content— Netflix knows when to nudge people with pitch-perfect push notifications in their mobile devices to cajole them back into their world. The resultant: we end up procrastinating, and binge watch the entire web series in one single sitting. Amazing!
App Fatigue to Customer Acquisition Cost – Challenges Galore
As the world goes mobile, apps have already surrounded most of the real estate on our mobile devices with 80% of the mobile time (comScore) consumed by them.
When users have multiple apps downloaded for a single utility, many apps don’t get the same leverage or attention compared to others.
Some of the apps are either uninstalled or are not used as frequently as they should be.
Mobile push notifications have proven to be an effective strategy to spark latent customers/users back into action on an app.
In an ideal world, firing few push notifications to a mobile device should do the trick. It should drive traffic and sales for an e-business. But, our real world hardly works that way.
Mobile app marketing experts, from quite sometime have been experiencing saturation in the app consumption. As the size of the Play and App stores has swelled, consumers are plagued by numerous app choices, which have resulted in app fatigue.
The biggest concern staring in eyes of mobile marketing strategists is: rising cost to acquire customers and keeping them hooked and loyal, in between, possibly engaging them into a business transaction!
Is it happening?
There are few roadblocks in the way. We are listing down 4 crucial challenges for mobile app marketers which are preventing them to reach their desired numbers.
There are 3.7 million apps on Google Play Store, as of March 2017 (Appbrain, 2018). Closely followed by Apple App Store with 2.1 million (The Verge, 2018). Naturally, the hustle for brands to be in customer’s Smartphone is already catching momentum. They all want a piece of the customer’s attention pie. The numbers suggest that customers are spoilt for choice. According to Techcrunch, a consumer uses an average of 9 apps daily and some 30 Apps monthly.
Every app category is almost saturated. Hence, one of the challenges for mobile app marketers is to get their app discovered. Or beat, feature in the Google and Apple app stores to get more organic downloads.
Rising User Acquisition Costs
The biggest hurdle for mobile marketers is to acquire new users for their apps. With umpteen amount of choices, there is very little an app marketer can do without spending dollars on paid marketing. The game has become costly. According to eMarketer, the total global mobile ad spend has grown almost 25% from 2016 to 2017, and it is set to increase further by the end of this year.
And, cost per app install around the world is more than $4, according to a study by Liftoff in 2017; take a look:
Hence, organic is dying a slow death and user acquisition cost is growing rapidly. The only way, it seems, is the inorganic way!
User Retention & Loyalty
So, you have acquired app installs using money as gasoline. It’s time to see your efforts snowball into something really huge. Hang on! The game has just begun. It has been found, within 3 days of an app install, on average 77% of its DAU users are lost. By the 30th day, an average app loses 90% of its users. It shows first 3-7 days are super critical for mobile app marketers to engage their users with an immersive experience if they want them to come back to their app frequently.
Best app user retention techniques consist of consistent and contextual communication with your target audience using targeted push notifications with irresistible offers at the right time.
It has been well established that cost of a customer acquisition is almost 5-7 times higher than retaining the existing set of customers. Hence, there is merit in the idea of customer retention.
Bad User Onboarding Experience
User onboarding is one of the fundamental steps in mobile app marketing world to deliver a customized and seamless experience after an app has been downloaded.
Let’s face it—No user wants to type in umpteen amount of information on his/her way to register for the app. It just ruins the entire experience. As mobile marketers, our job is to provide a friction-less experience to the users.
Setting expectations initially goes a long way for app marketers to capture the user imagination. Specify in the initial steps, when you will send targeted push notifications, in-app messages and other forms of communication. The need of the hour is to find the right balance between barraging the customers with promotional offers and being present in their memory with timely, and contextual messaging.
Combating ‘The Challenges’
Once you have spent the money on acquiring customers, user retention takes the center stage.
Especially in initial few days, giving users an appropriate reason to install your app and consistent communication is the difference between App uninstall and App engagement.
The last thing you want is to irritate your customers with untimely messages which are not personalized.
The solution: Push Notifications
Push notifications are an ideal way to reach out to your targeted customers and pull them into action, considering they have successfully downloaded your app. But, how do you know when to push certain communication at certain time to certain segment of your customers?
Well, marketing automation platform like Gamooga has solved this riddle for us. The above-mentioned challenges can easily be tackled through AI and Machine Learning based technologies and solutions.
Equipped with the best marketing automation platform, a mobile app marketer can drive huge benefits through granular segmentation, with advanced knowledge about its customers including their behavior, how do they engage with your app, how they react to your messages, their usage, purchasing habits, life time value, etc.
The greatest advantage of having an advanced omni-channel customer engagement platform like Gamooga is: you can push almost 80% notifications to the mobile devices of your customers in comparison to the industry standard of 50% (only!) through its powerful targeting engine. In our next blog post, we shall go in more detail on why users uninstall Apps and measures you can take to reduce your App Churn Rate.
Fuel your mobile marketing strategy with Gamooga’s AI-powered Mobile Automation Platform. Schedule a free demo to find out how it helps some leading brands to engage its mobile app users and drives more revenue for them.