View
74
Download
2
Tags:
Embed Size (px)
Citation preview
Don’t Market Your App If You Don’t Know This – Pirate Metrics for Mobile Apps
Puneet Yamparala, App Entrepreneurs Association
Before you start,
Get the FREE GUIDE
To
Getting 5,000+ Downloads
in 2 Days
Using Ninja Tactics
http://eepurl.com/1xx-r
Puneet Yamparala, App Entrepreneurs Association
Puneet Yamparala, App Entrepreneurs Association
Sensational title aside, this post is inspired by how a game studio in silicon valley learned to measure all their
marketing activities and increase their revenues just by…
Puneet Yamparala, App Entrepreneurs Association
… focusing on one little thing at a time.Last week I did some consulting for a game app development studio based here in Silicon Valley.
Puneet Yamparala, App Entrepreneurs Association
The quality of their apps was really good, their team was excellent, and they were really passionate about what
they were doing.
Puneet Yamparala, App Entrepreneurs Association
BUT this game studio was just not making enough money.The reason was that they were not ready to start
marketing their app or trying to increase downloads.
Puneet Yamparala, App Entrepreneurs Association
All this while they had been focusing on Vanity Metrics and had burnt through a huge amount of their
cash reserves while marketing their app.
Puneet Yamparala, App Entrepreneurs Association
Vanity Metrics and How They Waste Your Marketing Dollars
Puneet Yamparala, App Entrepreneurs Association
One of my biggest learnings very early on in my app business was the importance on focusing on the metrics
which matter. I started off focusing on …
Puneet Yamparala, App Entrepreneurs Association
the biggest vanity metric out there - DOWNLOADS.
I just wanted to get as many downloads as possible for our app.
Puneet Yamparala, App Entrepreneurs Association
I wanted to come up with cool new marketing strategies and ideas to get more and more users to download the
app.
Puneet Yamparala, App Entrepreneurs Association
I liked to brag about the couple of thousands of downloads I was able to get with this cool new
campaign I had just launched.
Puneet Yamparala, App Entrepreneurs Association
This went on for about 6 months before we realized what was wrong.
Puneet Yamparala, App Entrepreneurs Association
We had spent a huge portion of our marketing budget, and we did get a LOOOT of downloads, but we were
failing in our app business.
Puneet Yamparala, App Entrepreneurs Association
Downloads are Easy, App Business is Hard
Puneet Yamparala, App Entrepreneurs Association
We realized that although we had a huge number of downloads, we didn't really understand what was going
on with our users, once they downloaded our apps.
Puneet Yamparala, App Entrepreneurs Association
We were basically clueless as to what was going on inside the app. We had figured out how to get large amounts of
downloads for our target audience.
Puneet Yamparala, App Entrepreneurs Association
We learned that Downloads are easy (if you don't believe me, just download this free guide to learn about a
strategy to get a couple of thousand downloads a day -http://eepurl.com/1xx-r)
Puneet Yamparala, App Entrepreneurs Association
We reached out to one of our mentors and that's when we realized what we were doing wrong. We basically did
not know about the whole concept of …
Puneet Yamparala, App Entrepreneurs Association
… Average Revenue Per User, nor did we really think about retention, engagement or Lifetime Value.
All we had been thinking about was DOWNLOADS.
Puneet Yamparala, App Entrepreneurs Association
Pirate Metrics in General
Puneet Yamparala, App Entrepreneurs Association
We learned that the new approach which was being suggested to us was known as Pirate Metrics. This had been popularized by Dave McClure, the founder of 500
Startups.
Puneet Yamparala, App Entrepreneurs Association
Basically the summary of Pirate Metrics is that as a business you need to focus on 5 Key Metrics:
1. Acquisition - how well do you acquire customers/users2. Activation - how well do you get the new users to start
using your product
Puneet Yamparala, App Entrepreneurs Association
3. Retention - how well do you make the users come back to your product
4. Referral - how well do users refer your product to others
5. Revenue - how well do you monetize your users
Puneet Yamparala, App Entrepreneurs Association
In case you are wondering why these are called pirate metrics, then just look at the first letter of each metric. If
you put them together, they form AARRR - which is …
Puneet Yamparala, App Entrepreneurs Association
… kind of like the cry of a pirate :)Now let us try to modify these a bit so that these are
more relevant to mobile apps.
Puneet Yamparala, App Entrepreneurs Association
Puneet Yamparala, App Entrepreneurs Association
Pirate Metrics for Mobile Apps
Puneet Yamparala, App Entrepreneurs Association
For mobile apps, this is what the Pirate metrics look like and:
1. Acquisition - how well does your app's key idea convert potential users, into users who download your
app
Puneet Yamparala, App Entrepreneurs Association
2. Activation + Engagement - how many of the people who have downloaded the app, actually open the app
and how long do they use it
Puneet Yamparala, App Entrepreneurs Association
3. Retention - how long do they actively use your app, after home many days do they stop using your app or
delete it
Puneet Yamparala, App Entrepreneurs Association
4. Referral - how many users recommend the app to others or use in app invite functionality to invite their
friends5. Revenue - how well does your app monetize
Puneet Yamparala, App Entrepreneurs Association
Also another important point to note is that, there is a reason these metrics are arranged in this order.
You should work on fixing each metric in the order they are arranged.
Puneet Yamparala, App Entrepreneurs Association
IMPORTANT - I am asking you to fix each metric, not scale it. For example, you just need some minimum traffic to figure out how well your app idea is going to do with …
Puneet Yamparala, App Entrepreneurs Association
… people in your target audience. DO NOT spend all your money at this stage trying to acquire a hundred thousand downloads. If the rest of your funnel is not optimized, …
Puneet Yamparala, App Entrepreneurs Association
… your users will just leak through your funnel and you will be left with an app which has no active users.
Puneet Yamparala, App Entrepreneurs Association
So When Should You Start Marketing Your App
Puneet Yamparala, App Entrepreneurs Association
Coming back to original story, the advice which I gave to the game studio was pretty simple. We looked at how
their apps were doing at each of these metrics and
Puneet Yamparala, App Entrepreneurs Association
identified some strategies to improve each metric.Once each one of these metrics has been optimized you
are all set to scale your marketing.
Puneet Yamparala, App Entrepreneurs Association
If you would like to see some strategies for improving each of these stages, download the free slide deck below:
Puneet Yamparala, App Entrepreneurs Association
Strategies for Improving Your Pirate Metrics
http://appentrepreneursassociation.com/wp-content/uploads/2014/09/Pirate-Metrics-
Strategies.pptx
Puneet Yamparala, App Entrepreneurs Association
if you are reading this on some place other than AppEntrepreneursAssociation.com, then just go to the
website and find this post.
For More App Business
AdviceApp Entrepreneurs
Associationhttp://appentrepreneursassociation.co
m
Puneet Yamparala, App Entrepreneurs Association