Power Your Mobile App: Improve Retention, Engagement and Revenue with Marketing Automation

© 2014 Marketo, Inc. Marketo Proprietary and Confidential © 2014 Marketo, Inc.

How Marketing Automation can improve

App Retention, Engagement and Revenue

Mike Stocker Dir. Business Development Twitter: @michaelstocker

Page 2 © 2014 Marketo, Inc.

@michaelstocker

About Me: Mike Stocker

• Managed Marketo’s Customer Success team and 50 largest customers.

• Founded and sold 3 companies. Owzom mobile games, Kenzei email services and shopping cart abandonment

• Major acquisition media buyer spending $5MM/mo. in Display ads.

• Have worked w/major brands such as Amazon, Google, Nordstrom, Williams Sonoma, URBN, Crate and Barrel etc.


@michaelstocker

High level topics

• Why Apps are important

• The challenge today that companies with apps face

• How companies with apps can use Marketing Automation to improve app retention, engagement and revenue

• 5 Case Studies in mobile app engagement • MyFitnessPal (#1 Health and Fitness App ~65 Million users) • Tagged • ThredUp • Safeway • Starbucks


@michaelstocker

Why Apps are important

• April 2014 study, Flurry found the average American spends 162 minutes on their mobile device daily, and 86% of that time is spent in apps!

• In surveying 3,500 global respondents, Compuware reported that 85% favored mobile apps over a mobile website.

http://www.compuware.com/en_us/about/press-releases/2013/3/mobile-apps-vs-mobile-websites----and-the-winner-is.html

http://www.compuware.com/en_us/about/press-releases/2013/3/mobile-apps-vs-mobile-websites----and-the-winner-is.html


@michaelstocker


@michaelstocker

The challenge:

• The average person has 30-100 apps on their phone • (How to keep the

attention of users?)

• On average, 80% of apps are used only once

• The cost to acquire an

app install is rising


@michaelstocker

Questions that an App presents:

• Apps provide Marketers with a new channel and new data and activities to use.

• Once you have someone install your app, how do you keep them engaged over time?


@michaelstocker

3 Tips to help engagement of an App

• Create an app that is useful and provides value • Communicate benefits and features regularly with your

app users via: • in-app messaging/dynamic content in app • Push notifications • Email (Marketing Automation) • Loyalty programs

• Build a community outside of the app • Blogs, Facebook, Twitter • Users should be able to move seamlessly between these


@michaelstocker

How does Marketing Automation help?

Marketing Automation helps you communicate regularly with your app users in a personalized way over time to build enduring relationships with your users.


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Example 1:


@michaelstocker

“Consistently sharing relevant content is a key component of

our mission, but it can be infinitely challenging when you

have tens of millions of users across multiple channels.

Marketo helped us address this significant challenge, gave

us the ability to scale and helps us leverage things like

personalization, analytics and segmentation to deliver the

right content to the right people at the right time.”

~ Tara-Nicholle Nelson, Vice President of Marketing


@michaelstocker

world’s most popular health & fitness app

65 million users

15 languages

#1 on iTunes, Google Play Stores last 3 years

Top 10 in 65 countries

12 billion foods

50 billion calories burned via API

28 million recipes

150 million+ pounds lost


@michaelstocker

MyFitnessPal- Before Marketing Automation

• In 2012, MyFitnessPal sent 1 email to their user base

• In 2013, MyFitnessPal sent 4 emails to their user base

• Prior to Marketing Automation, emails had to be created by Engineering resources


@michaelstocker

MyFitnessPal Strategy

• Begin more regular communication with users • Phase 1: Relevant, Personalized Email

• Phase 2: Push notifications/In-App messaging

• Build a community: • “Hello Healthy Blog”

• Facebook and Twitter


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Examples of MyFitnessPal communications:


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Results: Customers loved the engagement!


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What were the results?

Source: MyFitnessPal


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MyFitnessPal Results 2

Hello Healthy Blog one of top Health &

Fitness destinations

Huge growth of Facebook/Twitter

Sources: Google Analytics, Rodale, Hearst, Time, Inc.

Sources: Google Analytics, Rodale, Hearst, Time, Inc.


@michaelstocker

Example 2:


@michaelstocker

Who is Tagged?

• America’s 2nd largest social / dating app • With over 300 million registered members in 220

countries, who make over 100 million new social connections every month, Tagged is a market leader in social discovery.

• Tagged works with Marketo LaunchPoint integrated partner Swrve to power their in-app messaging campaigns.


@michaelstocker

Tagged Strategy

• Leverage in-app messaging to drive increased acquisition via improved app store ratings

• Drive more (and better) user ratings. Following significant improvements to the Tagged mobile experience, it was necessary to ‘move’ the existing app rating to reflect the new reality - by ensuring more users of the new experience rated the app.

• Get a clearer understanding of the motivations of Tagged users: what

they valued in the service, the aspects of Tagged they were most interested in and so on - all in advance of a major redesign of the product.


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Examples of Tagged Marketing:

Delivered in-app messages that filtered “positive” responses and directed them to the app store to rate.


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Tagged Results

• “Increase in app-store rating from 2.3 to 4.2 – in 14 days!

• With a +95% response rate to the survey questions, and over 250K responses, the Swrve delivered survey has ensured Tagged has more insight into the requirements and attitudes of its mobile customers than ever before - insight that will help drive a greater product experience and more user engagement than ever before.

• “It couldn’t be simpler. Swrve enables us to move the

numbers that matter to our mobile business” -Sr. Director CRM – Tien-Wei Huang


@michaelstocker

Example 3:


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Who is thredUP?

• SF-based eCommerce company and the nation’s most trusted online marketplace for buying and selling “practically new” clothing

• thredUP works with a Marketo LaunchPoint Partner: Kahuna to drive mobile marketing automation via push notifications.


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thredUP Strategy

• thredUP wanted to use marketing automation type functionality to deliver personalized messages at the right time via push notifications to improve user engagement and customer lifetime value.


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Examples of thredUP push notifications

Push notifications powered by


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thredUP Results

• Lauren Miller, the Sr. Director of Marketing at thredUp stated “We have increased our monthly engaged users by 21% in the past month alone.” And since using marketing automation functionality, thredUP has seen a 50% increase in mobile revenue – tremendous results for any company!

Source: Kahuna


@michaelstocker

Example 4:


@michaelstocker

Who is Safeway?

• Safeway is an American supermarket chain which was acquired by Albertsons in July 2014 for $9.2 billion.

• Based on 2009 revenue, Safeway is the 11th largest retailer in the United States.


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Safeway Strategy

• Safeway was in a very competitive space with WalMart and Target opening grocery businesses and wanted to use their app as a loyalty program and created the Just4U program.

• Safeway used modern email to drive engagement back to the app and drive increased purchasing at physical stores.


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Examples of Safeway Marketing:


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Safeway Results

• “There is a much greater propensity for people that have downloaded the mobile app to be on the high incremental spend side.

• “Also, mobile users spend between 40% and 50% more than desktop users and it makes sense.”

» Steve Burd, Chairman and CEO of Safeway

http://wallstcheatsheet.com/stocks/safeway-earnings-call-nuggets-mobile-app-trends-incremental-spend.html/





















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Example 5:


@michaelstocker

Who is Starbucks?

• Starbucks Coffee, is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world.

• Starbucks has 23,305 stores in 65 countries and territories.

• ~$15 Billion in Revenue in 2013.


@michaelstocker

Starbucks Strategy

• Starbucks has locations everywhere and many loyal customers. How could they increase customer loyalty?

• Starbucks launched the Starbucks mobile app with a focus on loyalty and mobile payments.

• Starbucks uses email to drive customers to the app, to see their rewards, to download music and other content etc.

• Starbucks uses push and in-app messaging to alert users of a reward through the loyalty program.


@michaelstocker

Examples of Starbucks Marketing:


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Starbucks Results

• “For us, it’s about creating relevant, meaningful relationships with our customers, both in our stores and online.”

• The Seattle-based coffee giant, which said in March that more than 14 percent of purchases in its U.S. stores are paid for through its app.

-Chief Digital Officer Adam Brotman Source: http://www.techrepublic.com/article/starbucks-has-already-shown-us-the-future-of-mobile-payments/

http://www.techrepublic.com/article/starbucks-has-already-shown-us-the-future-of-mobile-payments/






















@michaelstocker

Conclusion

• Create an app that is useful and provides value • Communicate benefits and features regularly with your

app users via: • in-app messaging/dynamic content in app • Push notifications • Email (Marketing Automation) • Loyalty programs

• Build a community outside of the app • Blogs, Facebook, Twitter • Users should be able to move seamlessly between these

Marketing Automation can power huge increases in

retention for your mobile app.

Apps and Email go together like chocolate and peanut

butter

Treat an app like a mobile version of your web

experience- you have to drive your audience to visit

and return.

App users must move seamlessly between

an app, the web and social channels

@michaelstocker @marketo #mktgnation

© 2014 Marketo, Inc. Marketo Proprietary and Confidential © 2014 Marketo, Inc.

Thank You!

Mike Stocker, Director, Business Development

Twitter: @michaelstocker @Marketo #marketingnation

Technology

Power Your Mobile App: Improve Retention, Engagement and Revenue with Marketing Automation