5 Best Practices of Top-Earning Mobile Apps and Games - Mario Viviani

MARIO VIVIANIT E C H N O L O G Y E V A N G E L I S T, A M A Z O N A P P S T O R E U K

@mariuxtheone marioviviani

5 BEST PRACTICES OF TOP-EARNING MOBILE APPS AND GAMES

I T ’S A -ME!

Mar io V iv ian iTechnology Evangelist, Amazon Appstore UK@mariuxtheone

Android Developer from 201095+ apps published12,000,000+ downloadsGoogle Developer Expert 2013-15Startup Founder, Co-WorkerSpeaker at: Droidcon, Android Dev Days, Google I/O 2015

Take Care of Your Best Customers1

Casinos Defined Common Terms

Whales, Dolphins, Minnows

Monetization strategy is segmented, based on different customer experiences at different price points.

F2P:• Minnows = 90-98% of users• Dolphins = 50% of revenue• Whales = 3-4% of paying users (<0.1% total)

Source: GGV Capital, Feb. 2013 — http://bit.ly/1Ldu5Fu

Power-Users AreNot New

Well-Known across Industries

Mobile isn't the first industry to recognize the importance of highly engaged customers.

They Spend on the Things They Love

Substantial Spenders

When it comes to their passion (whatever it may be), power-users spend more money than the average fan.

What Do They Look Like to Us?

Amazon Appstore Power-Users

• Spend $50/month or more• On average, spend >$200/month• Are concentrated in US, Japan, UK, and

Germany

Source: Amazon Appstore

Power-Users Are Loyal to a Few Apps

Focused Passion

In January:80% of customers who spent $1,000 spent 75% (or more) of that on just two titles.

Source: Amazon Appstore

Offer Specials and VIP Exclusives

Reward that Loyalty

Give your most dedicated customers something extra, whether it be a special discount, early access, or maybe exclusive content.

Understand the Connection

Emotion & Spending

Knowing why they buy is critical to making your app attractive to power-users—and more importantly, worthy of them.

Connect with Who or What You Admire

Stand Out, or Fit In?

Go big: Identify with someone, a broader community, or something that inspires you.

Go small: Establish yourself as part of an elite tribe.

TAKE CARE OF YOUR BEST CUSTOMERSStrategy #1

• Recognize the importance of the "vital few"

• Reward loyal customers as VIPs

• Satisfy their emotional desires

Make It Easy to Buy2

0 24 48 72 96 120 144 168 192 216 240 264 288 312

EARLY ENGAGEMENT IS CRITICALIn-App Purchasing by Hour

Source: Amazon Appstore

Hours since download

18%

Total customer value

KEEP CUSTOMERS ENGAGEDIn-App Purchasing Adds Up over Time

Source: Amazon Appstore

Engage customers early 37% of customers who will purchase, do so on day 0

Keep them in the app 48% of repeat purchases happenwithin one hour of a previous purchase

Give them a reason to come back 64%

of revenue comes from 3rd order +

74%

of revenue occursafter the first 7 days

56%

of revenue occursafter the first 30 days

1-5 Items 6-10 Items 11-15 Items0%

20%

40%

60%

80%

100%

120%

140%

160%

69%

100%

145%

SELECTION DRIVES REPEAT ORDERSMore Is Better

Source: Amazon Appstore

# of In-App Items for Sale

ARPPUINDEX: Average = 100% 1.14%

of customers generate30% of sales

1 3 5 7 9 11 13 15 17 19 21 23 25 27 290%

20%40%60%80%

100%120%140%160%180%

Source: Amazon Appstore

Days Owned

+60%

averageselling price

REGULARS SPEND MOREPrice Sensitivity Declines over Time

Conversion RateINDEX: Average = 100%

1-5 6-10 11-150%

50%

100%

150%

200%

147%

100%

52%

Price Points

MANY PRICE POINTS MAY BE CONFUSINGOffer Price Variety, but Not Too Much

Source: Amazon Appstore

“

What are the top-grossing developers doing differently?

COHORT ANALYSISDifficult to Compare Apps Directly

• Based on Behavioral Analytics• Shared experience• Usually limited to a specific time period• Related individuals form "cohorts"

• People who had measles at age 9• Tall pilots who flew for BA in March• Customers who purchased within one week

of download

Examples

COHORT ANALYSISTop Earners vs. Everyone Else

Looking at all customers who installeda Freemium app on a specific date.

Split into to two populations (cohorts):

Cohort 1: Top 50App or game was one of the Top 50 Highest-Grossing titles

Cohort 2: The RestApp or game was NOT one of the Top 50 Highest-Grossing titles

Top 50

The Rest

0 1 3 7 14 300%

20%

40%

60%

80%

100%

120%

140%

160%

Days Since Installation

Rel

ativ

e P

erfo

rman

ce

SALES & REVENUEPurchase Count x Average Transaction Amount

Source: Amazon Appstore

“

Does item quality alone account for the difference in average IAP transaction amount?

ASSORTMENT BY PRICE POINTTotal Marketplace

$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99 0%5%

10%15%20%25%30%35% 31% 29%

7%12% 11%

5% 3% 1%

14%11%

6%3%

16% 16%11% 9%

% of Assortment % of Sales

Source: Amazon Appstore

ASSORTMENT BY PRICE POINTTop 50 Only

$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99 0%5%

10%15%20%25%30%35%

28%

15%10%

13% 11% 9% 9%5%

32%

19%

7%4%

10% 12%

5% 4%

% of Assortment % of Sales

Source: Amazon Appstore

MAKE IT EASY TO BUYStrategy #2

• Keep customers engaged

• Maintain a healthy selection

• Limit number of price points

• Offer higher-value items

Optimize the Experience3

REDUCE USAGE BARRIERSDon't Inhibit Frequent Use

Encourage Longer Sessions

Tune Usability / Difficulty

Too hard, and users will abandon. Too easy, they may get bored.

Top 50

The Rest

0 1 3 7 14 300%

10%

20%

30%

40%

50%

60%

70%

Days Since Installation

Act

ive

Use

rs

Source: Amazon Appstore

USER ACTIVITYAt Least One Session/Day over First 30 Days

Top 50

The Rest

0 1 3 7 14 300

5

10

15

20

25

30

Days Since Installation

Tota

l Min

utes

Source: Amazon Appstore

TOTAL TIME IN-APPSessions/Day x Average Session Length

Show Clear Value & Bonus Savings

Simplicity Sells

Use tabs and tiles to allow users to shop by item type, function, and price. Show “extra” value of more expensive items. Catalogs following this format raised ARPPU 75% over the store average.

Source: Amazon Appstore

Explain How to Purchase Items in Your App

Tutorials Really Help

The best tutorials show features and benefits of each items so the customer can gauge value, boosting conversion by up to 150%.

Source: Amazon Appstore

Show Customers How to Apply Their Purchases

Tutorials Really Help

Good post-purchase tutorials can have a dramatic impact on repeat sales. The best ones we saw showed 65% more repeat purchases.

Source: Amazon Appstore

OPTIMIZE THE EXPERIENCEStrategy #3

• Reduce usage barriers

• Tune usability / difficulty

• Simplify purchasing choices

• Explain how to buy items

• Explain how to use purchased items

Support Social Engagement4

Let Them Tell the World Why They're Great

Enable Status Updates

Users like to highlight in-app accomplishments and ascribe social status to the reactions they get from friends and followers.

Achievements and Leaderboards

The Lowest Bar for Social

A little friendly competition can be a powerful motivator to play longer and remain engaged.

SUPPORT SOCIAL ENGAGEMENTStrategy #4

• Let users share their activity

• Include achievements and leaderboards (games)

Encourage Advocacy5

Let Them in on Your Cool Plans and Updates

Communicate with Your Users

The right message at the right time can help you build a connection beyond a single app or transaction.

CELEBRATE USER ENTHUSIASMNurture Creative Expression

LET USERS EXTEND THE EXPERIENCEEnable User Contribution

Minecraft Trivia Crack

MERCHANDISEPhysical Goods

ENCOURAGE ADVOCACYStrategy #5

• Engage with influencers

• Celebrate creative expression

• Allow user contributions / content creation

• Offer branded merchandise

Quick Recap6

5 Strategies of Top Earners

1) Take care of your best customers.

2) Make it easy to buy.

3) Optimize the experience.

4) Support social engagement.

5) Encourage advocacy.

A M A Z O N A P P S T O R E D E V E LOP E R S U M M I T

DEVELOPER SUMMITOCTOBER

4TH CODENODE

10 SOUTH PL, LONDONbit.ly/AppstoreSummit2016

THANK YOU!

Mario Viviani@mariuxtheone

@AmazonAppDevvivianim@amazon.co.ukdeveloper.amazon.com/

appstorebit.ly/gdgliverpoolamazon