TapSense has collected billions of marketing data points over the past two and half years since our inception. We’ve also worked hand-in-hand with hundreds of marketers, helping them make sense of the fragmented and sometimes confusing world of mobile marketing. As marketers prepare for 2014, we set out to develop a set of mobile marketing best practices for them, using both our own first party data and other third party sources.
What follows are four best practices for mobile marketing, that should provide significant guidance to marketers as they plan for 2014.
You only need to support the iPhone and iPad, Android is a nice to have.
When I speak this is consistently the most controversial data point that I present. However, I haven’t found a retailer or m-commerce player that will dispute our findings. At TapSense we see 80% of all m-commerce transactions occurring on iOS. This shouldn’t be a huge surprise when you look at income data by platform. A Comscore report released in March, they found that 41% of iOS users earn over 100K annually, that number on Android is almost half at 24%. Android users just don’t earn as much as iOS users, which results in lower purchase rates. I’ve even had retailers tell me off the record the difference in value between platforms can be as high as 10 to 1.
Mobile websites are great, but having an app is even better.
While almost all retailers have some mobile web offering, only the leading edge has embraced apps. Many people still ask me if an app is worth the investment? The answer is a resounding, yes. Consumers clearly have made a decision on what platform they prefer. According to a compuware survey from March of 2013 they found that 85% of consumers surveyed favored apps over mobile websites. This may not come as a huge surprise to those already marketing an app, but 85% is a much higher than I would have guessed. We see the similar results on our platform, with conversion rates on apps three times higher than on mobile websites.
The mobile KPIs that actually matter are Cost Per Download, Cost Per Visit, Cost Per Acquisition and Lifetime Value.
In mobile, there are only a few Key Performance Metrics (KPIs) that actually matter. Everything else is a vanity metric, that doesn’t real add real business value. Even the number of downloads, while directionally important, is totally irrelevant if only a fraction of those downloads are active users. Customers always are looking for benchmarks from us so they can compare their marketing to an industry average. On the TapSense platform we’ve seen the following averages over the past year: CPD avg: $2.52; CPV avg $0.13; CPA avg $5.16; LTV avg $16.07.
Use cohort analysis with source attribution to discover best performing marketing channels and strategies.
Cohort analysis is a fantastic data visualization tool that more and more marketers are starting to us. The concept is simple, cohort analysis is the measurement of a specific group (cohort) that is followed over time. Most of our customers use one week as the cohort unit and follow the results of the users acquired from that week over two, four and six week intervals. What’s most surprising, with the method of measurement, is that users continue to buy even eight weeks out. On average, we see Lifetime Value at eight weeks anywhere from double to triple what it was during the first week.
If would like to see the whole presentation click here.