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How to Grow the Customer Lifetime Value for Your App
• Co-Founder madvertise
• Mobile Ad Network, Berlin, 2008
• Co-Founder Remerge
• App Retargeting Platform, Berlin, 2014
• Background: Technical Product Management
About Pan
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
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
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
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.
How Do I Fix This?
• Use all tools you have
• Guide them through the features
• Bring value with social connection
• Push Notification
• Retargeting
• Use valuable & personalized messages
• Analyze where & why users quit
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
Example: Games App
The Challenge
30 Days Audience In-Game Progress
Challenge
100
32 18
1
Num
ber o
f Use
rs
(inde
xed)
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.
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
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!
189% Return on Ad Spend for Cervo Media
All results measured by independent external partner MAT 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
Pan Katsukis| E-Mail: [email protected] | +49 151 61711577 | Twitter: @derpan | Remerge GmbH, Mühlenstr. 78, 10245 Berlin
