“What is your motivation? When you drill down and ask, “What if there was zero ROI (of any form)?,“You’ll discover your highest and best use of time.”
Although there are numerous advantages that are identified while mobile app development for your business encompassing from brand positioning to boosting sales. But this is not hidden that it looks for investing considerable resources. The cost of app development is quite pricey.
Don’t Miss: Hidden costs of mobile app development
It must be kept into the mind that ROI in mobile app development is not always uniform and sometimes may not be proportional to the investment. Hence this reason is sufficient enough to analyse ROI that will turn up at the end of the mobile app development. Earlier we have discussed strategies to monetise a mobile app where I have elucidated monetisation techniques as well as strategies for apps that are not only diverse but can be adapted each to a specific app.
Although it was almost a year ago when apps invaded the lives where mobile marketing was really at its nascent stage and the marketers were evaluated by the scale of new users that they actually delivered. Almost 4 million apps are accommodating but the retention rates are still suffering considerably. Regarding the freemium-driven app economy, most of the apps are now making their money either from in-app purchases or advertising but the continuous engagement, and monetisation has really become difficult.
Why mobile marketers need to start measuring ROI?
The organic decline
Here organic multiplier come into the picture i.e. the number of organic installations that a marketer expect to get from just a paid install. We hear more often organic multiplier which further intensified from 1:1.5 to 1:0.2-0.5 keeping in mind that organic app discovery broken into large chunks. Organic downloads are still considered to be must have’s as far as mobile app marketers are concerned, who looks for every fraction to maximise the overall revenue by the organic users.
Increasing media cost
In the retrospect, the main objective behind paid installs were just to enhance the number of organic installs with the help of heightened app store rankings. But in the current scenario, store algorithms emphasised more on quality factors like ratings and reviews, usage a well as installs evidencing that the aforesaid tactics are no longer as effective as before.
What really making this undertaking arduous is the heightened demand which has led enhanced media cost. Hence marketers must be accessed to cost data by the ad group, geo n publisher, and creative variation instead of getting settled for getting cost data per campaign.
Convenient to measure app revenue
Here comes LTV i.e. Lifetime Value into the picture by tracking a wide range of revenue events.
4 best practices to evaluate ROI
Outlining a measurement Plan
This is quite essential to ascertain the particular purpose of having a mobile app. These mobile can satisfy various requirements encompasses from enhancing internal efficiencies for instance, automation of process by bringing mobile app into use-faster communication medium by enhancing employing productivity, more initiations to engage with the customers in order to increase sales.
As far as development of a successful measurement plan is concerned, it is quite essential to bring analytics into use. So, it is significant to outline a plan in order to evaluate ROI by establishing up performance as well as conversion tracker around various communication points. It is although advisable by the specialists to develop and implement ROI plan as soon as possible to enable longer stretch across all the phases.
Dedicate to outline cost-benefits analysis
Considering the benefits which must comprise of both quantitative as well as qualitative data. Qualitative benefits which include KPI such as :
Improved productivity like self-service apps which also reduces the time of interaction.
Enhancement over sales by marketing notifications and in-app promotions.
As far as retention and customer satisfaction of mobile apps are concerned, it can evaluated by utilising surveys, feedback and ratings. There are various other intangible benefits such as enhancing over customer satisfaction, productive as well as establishing communications between clients and internal employees which are regarded as the critical needs of businesses since these tangible benefits can calculate monetary value to make a justifiable investment and end up providing edge over the competitive market.
Apart from these businesses need to evaluate upfront cost as well as recurring cost where upfront cost looks for an app to be developed from scratch either outsourced or in-house, whereas recurring cost includes not only maintenance, but promoting an app, IT support or further cost in order to add up a new feature.
Estimation Customer Lifetime Value
It is quite essential to evaluate Customer Lifetime Value very precisely to measure the app’s revenue. If we talk about CLV, it can be expressed as an expected revenue that will be bestowed by customer considering the course of his or her association with the application.
Although there are various methods to get the estimated Customer Lifetime Value, one of them by calculating the total amount of purchase that the user made over his or her course or by evaluating total sales achieved around the time and further divide into the total number of users. Although it can be easily alleviated by those who already have their own website and can strive a projected CLV for their mobile app which will help them to predict the influence of the planned app while looking for strategies to expand the lifetime value.
Development cost comprises of cost to design, development, and implementation of the application hence it is considered to be extremely on higher subset. This consider to be a long stretch covering every phases which comprises not only the cost to design development and implementation of the application but includes maintenance and support which will implement the long-term cost.
Fluper believes it to be essential that users must be segregated separately since users come from different sources as well as represents different pattern of consumption in order to reach more reliable ROI score. We believe that it is pretty much essential to outline an informed decision before getting your hands into the mobile app development. Hence a business must consider the long term value that a mobile app should deliver either by bringing internal efficiencies into use or creating all additional sales channel or rendering an alternative source of revenue.