In 2013, OpenMarketing's Marcia Kadanoff delivered an in-depth presentation at SES New York on mobile marketing focusing on how mobile analytics have changed the way companies measure consumer insight and engagement.
The only metrics that entrepreneurs should invest energy in collecting are those that help them make decisions. Unfortunately, the majority of data available in off-the-shelf analytics packages are what I call Vanity Metrics. They might make you feel good, but they don’t offer clear guidance for what to do. Source: Eric Reis, Author of the Lean Start Up, Serial Entrepreneur, and lecturer at HBS.
There are funnels and there are funnels – this particular funnel is from Apsalar – which does a great job at funnel analysis. Their particular thing is that while the analytics app is free and they do support campaign analytics and refer codes – which you can use to track individual campaigns – their real business is in mobile retargeting. This funnel analysis shows you the well documented link between engagement inside mobile applications and the ability to monetize that application. In fact, here you had to get to level 3 of this trivia game before people were willing to pay for it.
The first column shows the date at which the “Sign Up” occurred. The “People” column shows how many people signed up on that day (e.g. 10,324 on Feb 5th, 2013) and the percentages represent the percent of people who come back after x-amount of days (where x is 1 to 12 in this chart). So for the Feb 5th cohorts, 1.84% of them came back and consumed more content two days after signing up.In addition and without a lot of digging, you can clearly see that the segment of visitors who signed up on February 8th are super engaged in the first seven days, and they are coming back for more every other day. On the other hand, those who signed up on February 6th, behave completely different. They are interested initially and then their interest taper off.
Here we grouped users together by the first time they have launched the app, and then calculated the percentage of users went on to make a purchase. For example, in the first row (12/25), there were 34,851 users of which 1.11% made a purchase on Day 1. But as you move to the 2nd and 3rd day, the percentage drops sharply to 0.39% and 0.22%, respectively, before it evens out to roughly 0.10% per day.
If you want to increase revenue, you can: i) test a personalized incentive program, perhaps on day 3 or 4, or ii) make a change to the app designed to drive more sales beyond the first day. Again, cohort analysis can be used to determine if the incentive program or app change has a positive effect by looking at the cohort groups and their spending after these changes, and comparing them to the prior cohorts.
Driving Consumer Insight With Mobile Analytics
Driving Consumer Insightwith Mobile Analytics Marcia Kadanoff Open Marketing CEO & Founder @openmkNew York | March 25–28 #SESNY
New York| March 25–28, 2013 | #SESNYWhat We’re Going To Talk About• Types of analytics to look at for mobile versus web• Products available to help you get actionable customer insight• Analyses and testing needed to drive customer insight @openmk
New York| March 25–28, 2013 | #SESNYWhy Mobile Apps? @openmk
New York| March 25–28, 2013 | #SESNYEasily 40 Analytics Products Specific To Mobile @openmk
New York| March 25–28, 2013 | #SESNYVanity Metrics• Number of app downloads• Total number of sessions• Total number of first time users DAU – Unique Users @openmk
New York| March 25–28, 2013 | #SESNYFor Mobile Applications• Downloads are not enough• Need to drive 1x usage – an astounding 25% of people download an app and use it 1x only• Need to drive 3x usage – what the industry defines as loyalty @openmk
New York| March 25–28, 2013 | #SESNYGood Analytics Starts By Asking the Right Questions Acquisition A How do users find you? Activation A Do users have a great first experience? Retention R Do users use it subsequently? Revenue R How do we make money? Refer R Do users tell others?Source: Dave McClure’s AARRR model @openmk
New York| March 25–28, 2013 | #SESNY Cohort Funnel TrendAcquisition % who download the product by dayActivation % of users who % of users who Changes in this activate the product download the behavior over time by date of download product, use it 1x, and fill out a profileRetention % of users who use % of users who use Change in the the app 3x by date the app 1x who go number of loyal of download on to use the app 3x users over timeRevenue % of users who use % of users who Change in ARPU over the app 11x time move from step 3 to time and go on to step 4 in the complete in app purchase funnel purchaseReferral % of users who leave % of users who post Changes in a review by date of a product review sentiment over time activation after being exposed to 2 photos @openmk
New York| March 25–28, 2013 | #SESNYActionable Customer Insight MoreFree $$$ Less @openmk
New York| March 25–28, 2013 | #SESNY How We Assess Various Mobile Analytics Products Configurable Trend Funnel Cohort Campaign Drill Down Cost Dashboard Analysis Analysis Analysis Analytics SegmentsGoogle ★★ ★★ ★★ ★★ ★★ N/A FreeAnalyticsFlurry ★★ ★★ ★★ ★★ ★★ N/A FreeApsalar ★★ ★★★ ★★★ ★★★ ★★★ ★★★ FreeLocalytics ★★★ ★★★ ★★★ ★★★ ★★★ ★★★ $95/month For 1 appMixPanel ★★★ ★★★ ★★★ ★★★ Unclear ★★★ Enterprise ModelKontagent ★★★ ★★★ ★★★ ★★★ ★★★ ★★★ Enterprise Model @openmk
New York| March 25–28, 2013 | #SESNYFlurryFree / Market Leader• Excels at in-application engagement• Custom eventsWhat’s Lacking• Meaningful Segmentation• Support for Cohort Analysis• Customer-centered Funnels @openmk
New York| March 25–28, 2013 | #SESNYTheFind @openmk
New York| March 25–28, 2013 | #SESNYTheFind• Quite happy with their investment in mobile analytics to date• Stopped spending anything on paid media – virtually all their demand creation is done using SEO and email marketing• They know their business. They know their average number of downloads, and can judge the impact of a particular promotion on downloads and subsequent usage• Cohort analysis particularly painful and challenging @openmk
New York| March 25–28, 2013 | #SESNYFunnel Analysis @openmk
New York| March 25–28, 2013 | #SESNYAnother View of Engagement – From Localytics @openmk
New York| March 25–28, 2013 | #SESNYLink Between Engagement and Monetization @openmk
New York| March 25–28, 2013 | #SESNYCohort Analysis• The best kind of analysis for decision making• Almost impossible to do without the right tool behind you• One of the big motivators to move up to a mid-market analytics tool @openmk
New York| March 25–28, 2013 | #SESNYAnother View of Cohort Analysis• This time with drill down analysis @openmk
New York| March 25–28, 2013 | #SESNYSame Cohort – Different Views• Revenue changes from day 1 (baseline) to day 2 @openmk
New York| March 25–28, 2013 | #SESNYEvaluate Products • Dashboard view • Support for specific analyses you need • Ability to get to go beyond vanity metrics with more emphasis on engagement and ultimately revenue • Referral code for campaign tracking • Integration – how easy or hard it is – particularly with the other data sources that matter to you • Pricing model – FREE generally means free but Enterprise products are priced differently – on purpose • Worry more than a little about the cross device problem @openmk
New York| March 25–28, 2013 | #SESNYBest Practice:Chose A Product That Includes CampaignManagement Functionality Built In @openmk
New York| March 25–28, 2013 | #SESNYEnterprise Products @openmk
New York| March 25–28, 2013 | #SESNYRemember on Mobile• Almost all tracking is done with anonymous device fingerprint tracking, which is about 95% accurate – more so for Android, less so for Apple iOS• Apple no longer allows tracking by Device ID (UDID) and is expected to disallow tracking by Mac ID• The leader in cross device tracking & analytics for mobile is a company called Drawbrid.ge – worth checking out• Sources • http://www.mobilemarketer.com/cms/opinion/columns/12380.html • http://media.mobileapptracking.com/docs/MAT-App_to_App_tracking.pdf @openmk
New York| March 25–28, 2013 | #SESNYSephora Typical Email Sephora.com Traffic Open Device Over +50% of Sephora 1/3 of all Sephora.com emails are opened on traffic is from mobile mobile or tablet and tablet devices devices Source: Kaleidoscope Kontagent @openmk
New York| March 25–28, 2013 | #SESNYImpact Analysis @openmk
New York| March 25–28, 2013 | #SESNYClosing Thoughts• On mobile – because of the app stores - tracking through to the purchase event can be hard• Sometimes you have no choice but to use engagement as a proxy variable• Don’t forget good old fashioned A/B testing particularly of landing pages @openmk