Measure your app's success: Going beyond user analytics

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The purpose of this session is to educate the audience on the definition and fundamental pillars of user analytics within the context of the Free-to-Play model. The F2P model has been a game changer for how businesses (social games, mobile apps, etc.) now think about building revenue streams, and balancing revenue/monetization with building a truly engaging & sticky user experience. [They can work in harmony, but it takes understanding user behavior to get that balance right.] This new model also changes the way marketers need to think about managing their user acquisition strategies, and how to measure ROI. It’s now less about optimizing on CPA/CPI, and more about CPPC (cost per profitable customer). Ultimately, user analytics helps companies measure and improve their customer economics from acquisition to engagement to monetization, changing the focus from the value of a page to the value of the lifetime of your customers.

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Measure your app's success: Going beyond user analytics

  1. 1. Beyond User Analytics MAY 20, 21 2013 // SAN FRANCISCO
  2. 2. Shalin Mantri Product Manager Kontagent shalin@kontagent.com @shamantri MAY 20, 21 2013 // SAN FRANCISCO
  3. 3. AGENDA Why user analytics? Evolution of analytics User economics and the ARM model Roles Takeaways
  4. 4. Press coverage Well, shit. Awesome.
  5. 5. What mattered in the 1990s… Eyeballs
  6. 6. What mattered in the 2000s… Page views
  7. 7. What matters now… People
  8. 8. Britney Spears evolved, so did user analytics Web 1.0 (90s) Eyeballs Web 2.0 (00s) Page views Web 3.0 (10s) People Impressions Banner ads CPM Click, Actions Search Advertising CPC, CPA Users User Ads, Couponing CAC, LTV, ROI
  9. 9. Introducing Mobile Customer Intelligence It’s about creating the perfect customer experience
  10. 10. The key innovation: Calculating user value
  11. 11. One formula to rule them all…
  12. 12. If you are trying to make money… Lifetime Value per User (LTV) > Acquisition Cost per User (CAC)
  13. 13. If you are trying to reduce costs… Cost per Transaction (mobile) < Cost per Transaction (offline/web)
  14. 14. If you are trying to increase loyalty… Churn per User (mobile) < Churn per User (non-mobile)
  15. 15. “ARM” yourself to mobile success 1. Design a sticky user experience 2. Integrate the business model 3. Identify a marketing plan 4. Go to market, iterate, and profit
  16. 16. Phase 1: Design a sticky user experience Focus on content, game mechanics, viral hooks Optimize for key behavioral actions Track performance through N-day retention, user lifetime, and k-factor
  17. 17. Phase 2: Integrate a business model For example, if the goal is revenue: Focus on in-app purchases, ad networks, affiliate programs Optimize for key monetization actions Track performance through % paying users, ARPU, ARPPU, and LTV
  18. 18. Phase 3: Identify a marketing plan Focus on channel experimentation, cohort analysis Optimize for “highvalue” users Track performance through CAC, ARPU, and eLTV per channel/campaign
  19. 19. Now we can calculate user economics LTV $6.00 Profit CAC $4.00 ARPU $2.00 $0.00 0 20 40 60 Time Since Install 80 100 120
  20. 20. Phase 4: Go to market, iterate, and profit Focus on collaboration, rapid development cycles, data-driven decision making Track performance through LTV and CAC
  21. 21. User analytics spans across the org C - Level Stay on top of the important data points and trends that are core to your business success. DASHBOARD Production/Engineering Analyze how different cohorts of users interact with your application, and pinpoint the places to optimize that have the greatest impact. Marketing Team Measure and optimize your user acquisition campaigns with insight into full funnel KPI’s. Business Intelligence Deep dive into your user data using our data mining tools.
  22. 22. User analytics spans across the org C - Level Stay on top of the important data points and trends that are core to your business success. DASHBOARD
  23. 23. C-levels: Keep an eye on your business
  24. 24. User analytics spans across the org DASHBOARD Production/Engineering Analyze how different cohorts of users interact with your application, and pinpoint the places to optimize that have the greatest impact.
  25. 25. Product managers: Test, measure, iterate
  26. 26. User analytics spans across the org DASHBOARD Marketing Team Measure and optimize your user acquisition campaigns with insight into full funnel KPI’s. Profitabilit y
  27. 27. Marketers: Insight into acquisition ROI
  28. 28. User analytics spans across the org DASHBOARD Business Intelligence Deep dive into your user data using our data mining tools.
  29. 29. Analysts: Mine, explore, discover
  30. 30. Key Takeaways Don’t take data at face value – dig deeper! Identify your business objectives Define your success formula Design, instrument, and launch your app around these objectives Learn more at other KK sessions!
  31. 31. My app’s epilogue 150K users #12 on App Store 8% of DAUs were “power users” Power users shared songs more than 150 times per day CAC > LTV for ad campaigns Decided not to invest more resources
  32. 32. Questions? @kontagent @shamantri Rate this presentation on the KKONNECT app! MAY 20, 21 2013 // SAN FRANCISCO

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