Not so long ago, user acquisition was considered the most relevant metric by mobile app marketers, as they focused on gaining as many users as possible.
But one fact was inevitable, drop-rates were incredibly high, resulting in more than 70% of users uninstalling the app after only 90 days of use, in addition, studies also showed that 24% of users abandoned an app after only one use. These high negative metrics led to enlarging the app marketing funnel by adding engagement and retention into the mixture, thus focusing on captivating high-quality users.
Expanding the focus towards engagement and retention
Let’s face it, as mobile app marketers, we are constantly wondering what can we do to turn one-time users to loyal customers as the evolution of advertising keeps rapidly evolving and we face ourselves with a highly competitive market and never-ending consumer demands.
Once we achieve the difficult task of getting the user to download our app on their phones, it’s the post-install phase which ensures the user becomes a loyal customer. Modern app advertising focuses on optimizing performance, hence, engagement and retention is not something we can ignore.
It’s important to take into consideration that a good engagement and retention rate will depend on the type of app that is being measured and the marketing strategies’ objectives.
How can Mobusi help you engage and retain your customers?
Although many businesses still tend to use cost-per-install (CPI) pricing models, the key to more profitable campaigns relies on moving towards a payment method that ensures advertisers more control of their spend which, in turn, will result in more effective and cost-efficient advertising.
At Mobusi we are betting for a cost-per-engagement (CPE) payment model, this means that we focus on optimizing concrete actions that the user performs after the app is installed.
With CPE, advertisers themselves specify a metric within the app and only pay when the user has completed said action, whether it’s a sign-up, a purchase, reaching a certain game level etc. That is to say, the advertiser will pay only when the user engages with an ad unit.
What makes CPE appealing for advertisers is that this pricing model permits more transparency between the user and the advertiser, helping them reach the campaigns’ KPI objectives, which, in turn, will result in higher engagement and retention metrics.
If you are planning to expand beyond installs and you’re looking for ways to keep your users engaged with your app, Mobusi’s CPE model might be the right answer for you! Contact us to know more.