70% of the mobile users you acquire through CPI programs will have a lifetime value under $10.

Weighing Mobile User Acquisition vs. User Engagement Efforts

As has been said before, much has changed with the emergence of the ever-present mobile device. But, for marketers, much remains the same.

The marketer’s number one goal continues to be to play the role of major contributor to the company’s bottom line. What also hasn’t shifted is the fact that it consistently costs more money to gain a new customer than it does to keep one.

The latter point is especially true when it comes to user acquisition through mobile apps.

Consider how difficult it is to develop, introduce, and succeed with a mobile app:

According to VentureBeat, there are over 2,500 apps submitted to the app stores each day. That makes for one crowded playing field and prompts such challenges as discovery and compelling differentiation.

The same source says that almost 70 percent of apps will generate less than 5,000 downloads. Further, 60 percent will never be updated after release.

The costs associated with retaining a “loyal user” – someone who opens an app three times or more – is now at an all-time high of $2.25, per Fiksu. Year-over-year, the figure has risen by 34 percent.

And here’s one more set of numbers to ponder:

Over two-thirds of the users you acquire via CPI (cost per install) will have sub-$10 lifetime value, and almost one in six have an LTV of zero (VentureBeat).

But this is not a post to dissuade you from developing and introducing a mobile app.

Instead, the point of all the number listing is to impress on you the fact that it is critically important to spend time and dollars on user retention and engagement.

That’s where mobile marketing automation comes in.

Forrester has developed an excellent definition: mobile marketing automation uses contextual intelligence to proactively initiate and deliver engagement in the “mobile moment” with existing customers in real time. It includes analytical tools and requires integration with existing CRM.

By obtaining a holistic view of a consumer through CRM and FollowAnalytics’ mobile automation suite, marketers are able to factor individual journey information into initiatives, yielding the best chance to succeed.

Just why does following the consumer matter?

Eighty-six percent of consumers in a survey by Infosys say personalization plays a role in their purchasing decisions. And four in ten consumers buy more from retailers who personalize the shopping experience across channels (Monetate).

With mobile marketing automation, marketers can:

  • Build campaigns that are triggered by user actions and delivered in real time
  • Track every event that a user takes
  • Determine the funnels that they want users to experience and guide them down that path through personalized messaging

CRM plus marketing analytics and mobile marketing automation with FollowAnalytics has given Renault marketers a 360-degree view of the company’s app users. Relevant and contextual messages have resulted in an increase in the number of test drives and shortened the customer purchasing decision cycle.

Raja Hussian, the CEO of mobile advertising platform AirLoyal, says that, “Building app engagement with millions of users is like creating magic.”

Perhaps, but we believe that it begins with the creation of an app that will be useful to your customers and prospects. That takes more than magic – rather it is a human and machine touch that has them coming back for more. It also keeps you as the marketer from having to find new prospects to replace those who have become uninterested.