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Business

You’ve Built an App: Now What? Part 1: User Acquisition

user acquisition

Developers are makers. They solve pains, entertain, enlighten, and enhance productivity. Building an app can be an exhilarating experience and the joys of shipping can linger for… about ten seconds. Then comes the question, “I’ve built an app, now what?”

“Building an app is incredibly hard,” said Brenden Mulligan, former LaunchKit founder, which was recently acquired by Google. “But getting people to use it is an even bigger challenge. Once an app is released you start getting so many signals of how it’s doing, and it’s important to have the right infrastructure set up to receive and learn from those signals. Things like user activity, app store reviews, churn… In addition, devs have to be thinking of the next feature, or bugs they need to fix.”

Earlier this year, Ægir Thor Steinarsson and Anne-Marthe Lorck built an app to resolve what they were seeing as a common pain point.

“I am a fairly introverted person, and I am a bit disconnected from social groups: I’m studying with people much younger than me, I live in a foreign country. I mostly felt content in my day to day life, but also that I was missing out: I would end up repeatedly cancelling stuff I did want to do, like go to a concert or even a museum, because I didn’t know who to invite,” said Steinarsson.

“We did interviews with about 40 people and found others were experiencing social isolation as well,  we asked people to give it a pain grade on a scale of 1 to 5 and we started seeing everyone giving it a high pain point (3 and above). That turned out to be the main theme rather than the exception.”

Steinarsson and Lorck created BudUp as an app to solve that: users can register an event (a concert, movie, dinner party or other activity), and specify the number of people they hope to attend with.

The app was released on the Google Play Store. Android is the main mobile platform for professional developers, according to VisionMobile’s State of the Developer Nation quarterly report, which found that Android accounted for 79% of mobile developer mindshare.

For the BudUp team, while they have plans for an iOS app, for now their focus is all about traction: to get user downloads. As they ramp up their user acquisition, Steinarsson wants to make sure he has data systems in place to know what is happening and to monitor the user experience.

Knowing what to measure and using the free tools that can help developers do that quickly is crucial, said Caroline Ragot, Co-founder of Women in Mobile and Mobile Strategist at InfoJobs, a company of Schibsted Spain.

Ragot says there are two tasks to focus on after building an app: the first is acquisition, which is really about marketing an app.

The second task for a new app is to focus on retention. Ragot says retention is about marketing and the product working together. Analytics underpins an understanding of both these tasks.

Focusing on Acquisition: App Store Optimization (ASO)

Increasing user acquisition for your app starts with app store optimization. 30% of downloads occur after someone has searched by keywords in Google Play. So getting noticed within the app marketplace can already drive up user downloads before looking at any other type of promotion.

Ragot says there are three components in app store optimization:

  • text
  • icons
  • Screenshots
  • Review and rating.

Building off the experience of websites in getting noticed, app store optimization makes an impact. Ragot suggests thinking what people will search for when looking for your app, and making sure that those keywords are included in the application title text. “Put the keyword close to your brand,” said Ragot. “When I have done that for app projects, within about two hours I have seen apps move from a ranking of 30-something to a ranking of 8.”

After ASO, the next task is to make sure your icon looks appealing. Don’t believe this is important? Ragot suggests doing a simple app search for something like ‘clock’: “You will see that there will be some you don’t want to download just by looking at them.” In the Google Play console, there is a function to allow developers to A/B test their icons. Ragot suggests testing several and seeing which icon design drives more downloads for your app.

Screenshots are also important. “It’s like the landing page for your app. When visitors arrive, they need to understand what your app is about and it should inspire them to download. It is your first touchpoint with a user,” Ragot explained.

Finally, reviews and ratings make an impact. App stores like Google Play use metrics of downloads and active users as part of their search ranking algorithm, and reviews of apps makes a significant impact on helping encourage searchers to download.

Organic and Paid Acquisition

“The two big acquisition buckets are organic and paid,” said Mulligan, who recently talked about how to optimize app launches with First Round. “Ideally, an app can attract users organically. To do this, there are a lot of ways to optimize a launch to be more successful in initially attracting users. You need to make sure your product name is short and your tagline is clear and concise. You need to figure out what good acquisition looks like for your product and track it from the beginning. You need to bake in marketing hooks that let users share with others how they’re using your app and invite their friends to join them. When the time is right, you need to target the relevant reporters to cover your product and post it to sites with good lead generation like Product Hunt. And the whole time, make sure your line of communication with your early community is very open so you know what’s working, what’s not, and how to change your product to boost your acquisition.”

Other acquisition ideas include Facebook ad campaigns, which Ragot cautions can be expensive, but suggests it is still a good idea to dedicate a small budget of a few thousands dollars to encourage initial traction. Ragot also suggests focusing on social media by encouraging downloaders to share that they have downloaded your app and encourage their networks to do the same.

Steinarsson and Lorck will next focus on content marketing: getting featured in blogs, in particular. They believe when starting to acquire users it is important to do things that don’t necessarily scale in order to maintain an initial personal contact with potential users. They will target several content domains and see in which ones they get traction and focus on those segments to start.

When starting with acquiring users, it can feel like everything is an opportunity cost: choosing one strategy means not investing in another. Setting up analytics to quickly identify what is working is crucial to being able to do more of what works and quickly identify where effort is wasted. Ragot, Mulligan, Steinarsson and Lorck all agree: setting up analytics for acquisition and retention is essential.

And while their strategies are universal across mobile platforms, all three have focused on how to build acquisition with an Android app, reflecting the dominant position of Android in the mobile app developer’s mindshare. According to VisionMobile’s State of the Developer Nation report, 80% of those building apps professionally target Android.

In our next part, we will look at how to retain users once they have started using your app and in part three, we examine what analytics techniques for acquisition and retention to have in place and what free tools to use.

We are currently running our new survey and it is sci-fi themed! Would you like to contribute ? Take the survey 

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News and Resources

The user analytics duopoly: Google and Flurry are well ahead of competition

Usage analytics tools usually have a very simple integration which enables developer to get basic information about their active user base – size, usage frequency, device models, OS versions and app versions in use. More custom integration enables developers to log events to the usage analytics platforms when users perform specific actions within the app. This allows developers to track which features or functions are most use, measure conversion rates and pinpoint where in UI flows users are giving up if actions are not being completed.

User analytics services gain in importance as competition intensifies

User analytics services are becoming increasingly important as competition in app development continues to rise. The ability to track how users interact with apps is extremely valuable for both developers and product managers and to some extent acts as a proxy for user feedback. The absence of a direct two-way communication channel between developers and users means that user analytics often provide the only channel from user to developer. 28% of developers use user analytics services overall, but usage rises with the number of apps developed, reaching 39% among developers working on more than 10 apps per year.

Analytics services seem to be significantly more important among iOS developers (used by 39% of iOS developers) compared to other platforms. This suggests that iOS developers take more interest overall in their user base, a fact that could indicate a more professional approach to development. Among the top platforms, user analytics tools are the least popular with BlackBerry developers (15%). BlackBerry has suffered high churn of its affluent user base and developers sticking with the platform are likely to be working on outsourced ports with little interest about the way that users interact with an app. Among the other major platforms around a quarter of developers use user analytics, with Android being slightly ahead (28% of Android developers).

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Google and Flurry lead the pack

The picture in user analytics services is quite telling with two services dominating: Google and Flurry. Google has traditionally been strong in web analytics but it has now extended its stronghold on to mobile platforms commanding a 69% mindshare among developers employing User Analytics services. However, its dominance is mainly observed among HTML developers and although it leads on Android, BlackBerry and Windows Phone, its lead is by a small margin. Runner-up Flurry, is used by 49% of developers employing User Analytics services but is the leading User Analytics service on iOS (64% vs. 58% for Google). Flurry, being one of the pioneers in User Analytics has grown into one of the heavyweights in app ecosystems, and is recognised as a de-facto analytics platform for developers. Beyond these two services, there are numerous smaller players vying for third place, currently held by Testflight Live, a service recently acquired by ad mediation service Burstly in a move that is quite typical of the synergies between different tools and services that drive consolidation in the marketplace.

User Analytics services are stronger in Media apps (News/sports/weather/magazines) as well as in Entertainment apps, used by 36% of developers working on such apps. However, they are more or less popular across all app categories, but less so in Education/Reference apps. Google analytics is stronger overall across all these categories, with the exception of Games where both Google and Flurry are equally strong.

Minimizing overhead is the priority

Developers opt for services that are easy to integrate within their apps or that are available across several platforms as indicated by 51% and 49% of developers using user analytics services. I.e. the main priority for developers is to minimise the overheads associated with using user analytics, while optimising analytics comes third: only 31% of developers using user analytics services are concerned with the depth of analytics, and only 13% are interested in real-time reports. Cost is a also deciding factor as pointed out by 28% of developers employing user analytics.

We asked developers using User Analytics services to indicate the number of active users of their most popular app. Excluding those apps that have more than 500,000 users, developers’ most popular apps have an average active user base of 56,000 users, although this number varies widely within platforms and across platforms. iOS developers indicated 70,000 users vs. 51,000 users on average for Android. The median user base, is 27,500 users for iOS and 15,500 for Android, indicating that while Android commands a higher market share, iOS users engage more actively with the platform when it comes to apps with less than 500,000 active users.

[doritos_report location=’DE13 Article – User analytics’]

Which user analytics tools are other developers using?


[toggle title=”Important things to know about this interactive graph”]

  • All the filters in the graph refer to survey questions in which respondents could select multiple answers. This means that there is no direct link between the filter and the use of the tool. For example, filtering on “Android” means that the respondents develop Android apps. It doesn’t imply that they use the tools for their Android apps specifically, or even that the tool supports the Android platform. Use filters as a guideline only.
  • Keep an eye on the sample size. If the sample size is low, the graph doesn’t offer strong conclusions about the popularity of different tools. Use your good judgment when making decisions.[/toggle]

    Find the best analytics tool for you!

    [sectors ids=’40’]

Categories
Business

Growth Lessons from LinkedIn

Elliot Schmukler from LinkedIn spoke at a recent Growth Hacker conference about the strategies they’d used to grow the site since he joined in 2008. His advice was very helpfully summarised by Sandi MacPherson, Founder at Quibb and is general enough to be applied to mobile apps. Here’s our take on his main points.

Before you get started: Understand your channels

It’s important to understand how new users come to your product. Although it may be distributed exclusively through an app store, if that’s the only way users discover your product then you’re unlikely to succeed. This aspect of app marketing is still evolving rapidly, so keep testing different channels but focus your resources on the ones that generate the best results for you.

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Business

The “Onboarding” Problem

With some types of mobile app, getting a user to download it is just the beginning of the problem. If the application is going to be personalised to a user’s preferences, or allow them to interact with others via some online service, then they’ll need to provide some data before they can start using it. Typically the more information a user provides about themselves, the better job an app or service can do of tailoring the experience to them. Unfortunately, the more steps a user has to go through before they can start using an app, the less likely they are to complete the signup process. Getting this wrong can catastrophically alter the economics of user acquisition.

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Business

Advertising to Existing Users – could re-engagement reap rewards?

Currently the vast majority of mobile app advertising is used to generate new installs. At the same time, for some of the most successful revenue models, a small fraction of the most active users generate the bulk of the revenue. Free-to-play games are a good example of this model but there are similar in-app purchase driven schemes in other categories. Whilst a user is still very engaged with an app it’s likely that the most cost effective way to increase their spend is within the app. However, if an existing user stops using an app regularly ,then might there be more value in re-engaging users than acquiring a new user?

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Business Tips

Do Push Notifications Increase Engagement?

Push notifications are a popular tool for this purpose. With the vast majority of app revenue growth coming from in-app purchases rather than paid downloads, it’s more important than ever to keep users engaged with your apps. Updating users about new content or activity and driving them back to the app. At the same time the technology is controversial since unwelcome or excessive push notifications annoy users, who will either disable them or worse yet uninstall the app responsible. So is it worth the risk? Do push notifications work?