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How to Grow the Customer Lifetime Value for your App?

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Remerge CEO Pan Katsukis shares: How to Grow the Customer Lifetime Value for your App?

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How to Grow the Customer Lifetime Value for your App?

  1. 1. How to Grow the Customer Lifetime Value for Your App
  2. 2. •  Co-Founder madvertise •  Mobile Ad Network, Berlin, 2008 •  Co-Founder Remerge •  App Retargeting Platform, Berlin, 2014 •  Background: Technical Product Management About Pan
  3. 3. Growth of the App Ecosystem 0 50 100 150 200 '09 '10 '11 '12 '13 '14 App Downloads $ 0 $ 25 $ 50 $ 75 $ 100 '11 '12 '13 '14 '15 '16 '17 In-App Turnover $ 0 $ 10 $ 20 $ 30 $ 40 '13 '14 '15 '16 '17 '18 Mobile Display Ad Spent 0 1 2 3 '12 '13 '14 '15 '16 '17 '18 Smartphone User Sources: Apple, Google, Gartner, eMarketer Bn Bn Bn Bn
  4. 4. How Do I Get New Users? •  Cost-per-Install campaign size 2015: $10bn •  Facebook, Fiksu, Tapjoy, Applift, etc. •  Do localized low-cost promotion •  Social-Media, create valuable content •  A good, innovative product helps •  App store feature
  5. 5. Purchasing New Users is Increasingly Expensive $ 1,00 $ 1,20 $ 1,40 $ 1,60 $ 1,80 $ 2,00 '12 '13 '14 Cost per Loyal User Source: Fiksu, Nanigans $ 0,00 $ 1,00 $ 2,00 $ 3,00 $ 4,00 $ 5,00 Q4 13 Q2 14 Q4 14 Facebook CPM
  6. 6. User Retention is a Problem 0% 10% 20% 30% 40% 50% Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Active Users Per Month Only 5% of all users still use an App after 6 months after install.
  7. 7. How Do I Fix This? •  Use all tools you have •  Guide them through the features •  Bring value with social connection •  Push Notification •  Email •  Retargeting •  Use valuable & personalized messages •  Analyze where & why users quit
  8. 8. Segment Your Users & Understand Funnel E-Commerce Games •  Install •  Registration •  Open •  Search •  View Category •  View Product •  View Deal •  Add to Cart •  Purchase •  Install •  Registration •  Open •  Tutorial completion •  Level •  Virtual goods used •  Purchase
  9. 9. Example: Games App
  10. 10. The Challenge 30 Days Audience In-Game Progress Challenge 100 32 18 1 NumberofUsers (indexed) Actions Performed Grow revenues by increasing i) number of purchasing users ii) revenue per user Situation Majority of installs had low 30 days retention rate. Less than 1% did a first purchase.
  11. 11. Custom Audience Segmentation Applied 1   2   3   4   5   6   7   8   9   10   11   12   Free Player First-time Purchaser Frequent Spender Whale Beginner Intermediate Pro User Profile Spend Profile
  12. 12. Address Each User Segment Individually Beginner • In-active since 7 days • Re-engage! Intermediate • No purchase yet • Convert to 1st purchase! Whale • Ran out of credits • Recover spend level!
  13. 13. 189% Return on Ad Spend for Cervo Media All results measured by independent external partnerMAT by TUNE “We started working with Remerge three months ago and we have achieved outstanding results. They have proven to have an excellent product as well as an amazing team. We definitely plan to rely on them in the future as part of our app retargeting efforts.” Daniel Arroyave Head of Mobile Marketing, Funstage / Cervo Media Results
  14. 14. Pan Katsukis| E-Mail: pan@remerge.io | +49 151 61711577 | Twitter: @derpan | Remerge GmbH, Mühlenstr. 78, 10245 Berlin

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