How Marketing Automation Can Improve App Retention, Engagement, and Revenue
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Check out this presentation by Marketo's Mike Stocker, as he leads you through the steps to improving app retention, engagement and revenue with marketing automation!
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How Marketing Automation Can Improve App Retention, Engagement, and Revenue
- 1. Ā© 2014 Marketo, Inc. Marketo Proprietary and Confidential Ā© 2014 Marketo, Inc. How Marketing Automation can improve App Retention, Engagement and Revenue Mike Stocker Dir. Business Development Twitter: @michaelstocker
- 2. Page 2 Ā© 2014 Marketo, Inc. @michaelstocker About Me: Mike Stocker ā¢ Managed Marketoās Customer Success team and 50 largest customers. ā¢ Founded and sold 3 companies. Owzom mobile games, Kenzei email services and shopping cart abandonment ā¢ Major acquisition media buyer spending $5MM/mo. in Display ads. ā¢ Have worked w/major brands such as Amazon, Google, Nordstrom, Williams Sonoma, URBN, Crate and Barrel etc.
- 3. Page 3 Ā© 2014 Marketo, Inc. @michaelstocker High level topics ā¢ Why Apps are important ā¢ The challenge today that companies with apps face ā¢ How companies with apps can use Marketing Automation to improve app retention, engagement and revenue ā¢ 5 Case Studies in mobile app engagement ā¢ MyFitnessPal (#1 Health and Fitness App ~65 Million users) ā¢ Tagged ā¢ ThredUp ā¢ Safeway ā¢ Starbucks
- 4. Page 4 Ā© 2014 Marketo, Inc. @michaelstocker Why Apps are important ā¢ 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! ā¢ In surveying 3,500 global respondents, Compuware reported that 85% favored mobile apps over a mobile website.
- 5. Page 5 Ā© 2014 Marketo, Inc. @michaelstocker
- 6. Page 6 Ā© 2014 Marketo, Inc. @michaelstocker The challenge: ā¢ The average person has 30-100 apps on their phone ā¢ (How to keep the attention of users?) ā¢ On average, 80% of apps are used only once ā¢ The cost to acquire an app install is rising
- 7. Page 7 Ā© 2014 Marketo, Inc. @michaelstocker Questions that an App presents: ā¢ Apps provide Marketers with a new channel and new data and activities to use. ā¢ Once you have someone install your app, how do you keep them engaged over time?
- 8. Page 8 Ā© 2014 Marketo, Inc. @michaelstocker 3 Tips to help engagement of an App ā¢ Create an app that is useful and provides value ā¢ Communicate benefits and features regularly with your app users via: ā¢ in-app messaging/dynamic content in app ā¢ Push notifications ā¢ Email (Marketing Automation) ā¢ Loyalty programs ā¢ Build a community outside of the app ā¢ Blogs, Facebook, Twitter ā¢ Users should be able to move seamlessly between these
- 9. Page 9 Ā© 2014 Marketo, Inc. @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.
- 10. Page 10 Ā© 2014 Marketo, Inc. @michaelstocker Example 1:
- 11. Page 11 Ā© 2014 Marketo, Inc. @michaelstocker āConsistently 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.ā ~ Tara-Nicholle Nelson, Vice President of Marketing
- 12. Page 12 Ā© 2014 Marketo, Inc. @michaelstocker worldās 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
- 13. Page 13 Ā© 2014 Marketo, Inc. @michaelstocker MyFitnessPal- Before Marketing Automation ā¢ In 2012, MyFitnessPal sent 1 email to their user base ā¢ In 2013, MyFitnessPal sent 4 emails to their user base ā¢ Prior to Marketing Automation, emails had to be created by Engineering resources
- 14. Page 14 Ā© 2014 Marketo, Inc. @michaelstocker MyFitnessPal Strategy ā¢ Begin more regular communication with users ā¢ Phase 1: Relevant, Personalized Email ā¢ Phase 2: Push notifications/In-App messaging ā¢ Build a community: ā¢ āHello Healthy Blogā ā¢ Facebook and Twitter
- 15. Page 15 Ā© 2014 Marketo, Inc. @michaelstocker Examples of MyFitnessPal communications:
- 16. Page 16 Ā© 2014 Marketo, Inc. @michaelstocker Results: Customers loved the engagement!
- 17. Page 17 Ā© 2014 Marketo, Inc. @michaelstocker What were the results? Source: MyFitnessPal
- 18. Page 18 Ā© 2014 Marketo, Inc. @michaelstocker MyFitnessPal Results 2 Hello Healthy Blog one of top Health & Fitness destinations Huge growth of Facebook/Twitter Sources: Google Analytics, Rodale, Hearst, Time, Inc.
- 19. Page 19 Ā© 2014 Marketo, Inc. @michaelstocker Example 2:
- 20. Page 20 Ā© 2014 Marketo, Inc. @michaelstocker Who is Tagged? ā¢ Americaās 2nd largest social / dating app ā¢ 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.
- 21. Page 21 Ā© 2014 Marketo, Inc. @michaelstocker Tagged Strategy ā¢ Leverage in-app messaging to drive increased acquisition via improved app store ratings ā¢ Drive more (and better) user ratings. Following significant improvements to the Tagged mobile experience, it was necessary to āmoveā the existing app rating to reflect the new reality - by ensuring more users of the new experience rated the app. ā¢ 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.
- 22. Page 22 Ā© 2014 Marketo, Inc. @michaelstocker Examples of Tagged Marketing: Delivered in-app messages that filtered āpositiveā responses and directed them to the app store to rate.
- 23. Page 23 Ā© 2014 Marketo, Inc. @michaelstocker Tagged Results ā¢ āIncrease in app-store rating from 2.3 to 4.2 ā in 14 days! ā¢ With a +95% response rate to the survey questions, and over 250K responses, the in-app message 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. ā¢ āIt couldnāt be simpler. Using in-app messaging enables us to move the numbers that matter to our mobile businessā -Sr. Director CRM ā Tien-Wei Huang
- 24. Page 24 Ā© 2014 Marketo, Inc. @michaelstocker Example 3:
- 25. Page 25 Ā© 2014 Marketo, Inc. @michaelstocker Who is thredUP? ā¢ SF-based eCommerce company and the nationās most trusted online marketplace for buying and selling āpractically newā clothing
- 26. Page 26 Ā© 2014 Marketo, Inc. @michaelstocker thredUP Strategy ā¢ 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.
- 27. Page 27 Ā© 2014 Marketo, Inc. @michaelstocker Examples of thredUP push notifications
- 28. Page 28 Ā© 2014 Marketo, Inc. @michaelstocker thredUP Results ā¢ Lauren Miller, the Sr. Director of Marketing at thredUp stated āWe have increased our monthly engaged users by 21% in the past month alone.ā And since using marketing automation functionality, thredUP has seen a 50% increase in mobile revenue ā tremendous results for any company! Source: Kahuna
- 29. Page 29 Ā© 2014 Marketo, Inc. @michaelstocker Example 4:
- 30. Page 30 Ā© 2014 Marketo, Inc. @michaelstocker Who is Safeway? ā¢ Safeway is an American supermarket chain which was acquired by Albertsons in July 2014 for $9.2 billion. ā¢ Based on 2009 revenue, Safeway is the 11th largest retailer in the United States.
- 31. Page 31 Ā© 2014 Marketo, Inc. @michaelstocker Safeway Strategy ā¢ 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. ā¢ Safeway used modern email to drive engagement back to the app and drive increased purchasing at physical stores.
- 32. Page 32 Ā© 2014 Marketo, Inc. @michaelstocker Examples of Safeway Marketing:
- 33. Page 33 Ā© 2014 Marketo, Inc. @michaelstocker Safeway Results ā¢ āThere is a much greater propensity for people that have downloaded the mobile app to be on the high incremental spend side. ā¢ āAlso, mobile users spend between 40% and 50% more than desktop users and it makes sense.ā Ā» Steve Burd, Chairman and CEO of Safeway ļ¤ http://wallstcheatsheet.com/stocks/safeway-earnings-call-nuggets-mobile-app-trends-incremental-spend.html/
- 34. Page 34 Ā© 2014 Marketo, Inc. @michaelstocker Example 5:
- 35. Page 35 Ā© 2014 Marketo, Inc. @michaelstocker Who is Starbucks? ā¢ Starbucks Coffee, is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world. ā¢ Starbucks has 23,305 stores in 65 countries and territories. ā¢ ~$15 Billion in Revenue in 2013.
- 36. Page 36 Ā© 2014 Marketo, Inc. @michaelstocker Starbucks Strategy ā¢ Starbucks has locations everywhere and many loyal customers. How could they increase customer loyalty? ā¢ Starbucks launched the Starbucks mobile app with a focus on loyalty and mobile payments. ā¢ Starbucks uses email to drive customers to the app, to see their rewards, to download music and other content etc. ā¢ Starbucks uses push and in-app messaging to alert users of a reward through the loyalty program.
- 37. Page 37 Ā© 2014 Marketo, Inc. @michaelstocker Examples of Starbucks Marketing:
- 38. Page 38 Ā© 2014 Marketo, Inc. @michaelstocker Starbucks Results ā¢ āFor us, itās about creating relevant, meaningful relationships with our customers, both in our stores and online.ā ā¢ 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/
- 39. Page 39 Ā© 2014 Marketo, Inc. @michaelstocker Conclusion ā¢ Create an app that is useful and provides value ā¢ Communicate benefits and features regularly with your app users via: ā¢ in-app messaging/dynamic content in app ā¢ Push notifications ā¢ Email (Marketing Automation) ā¢ Loyalty programs ā¢ Build a community outside of the app ā¢ Blogs, Facebook, Twitter ā¢ Users should be able to move seamlessly between these
- 40. 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
- 41. Ā© 2014 Marketo, Inc. Marketo Proprietary and Confidential Ā© 2014 Marketo, Inc. Thank You! Mike Stocker, Director, Business Development Twitter: @michaelstocker @Marketo #marketingnation
Editor's Notes
- Iāve been in digital marketing for 16 years. I started my career in media buying, spending $5MM a month on display ads for acquisition campaigns- capturing ~200,000 emails registrations per day. I worked at early real time bidding firm Rightmedia which was acquired by Yahoo. Iāve also founded and sold three digital marketing firms, with the biggest being a venture funded firm called Kenzei doing shopping cart/lead form abandonment for major B2C customers like Experian and AARP. Fast forward a few years and I joined Marketo and ran our Customer Success team, as well as personally managed our largest customers such as Google, Facebook, Amazon and Chevron. In January, I transitioned to a new role helping Marketo define and develop our B2C Consumer Marketing strategy and business development partnerships.
- How many of you listening today have MyFitnessPal installed on your device? Here is a little bit about the company.
- MyFitnessPal now sends 4 messages per week as compared to 2012 or 2013 with Marketo Marketing Automation. They send helpful good content around healthy eating, including recipes, exercise tips and tricks and messages about how to use the app. One of their strategies has involved Building out a community via their Hello Healthy blog (The MyFitnessPal appās blog).
- Results of MyFitnessPalās usage of Marketing automation- A huge increase in user engagement! 500k users reactivated weekly, a 10% increased user engagement- and 4MM monthly unique visitors to their Hello Healthy Blog.
- We talked about a huge increase of 4MM users to the Hello Healthy blog- but did you know that it makes the blog one of the most trafficked health and fitness destinations on the web if you look at monthly uniques? Many of these visitors were driven via marketing automation campaigns that helped to drive users to get great recipes or fitness tips. This great engagement also helped to build the MyFitnessPal community- driving impressive growth in Facebook and Twitter presence. Talk about moving seamlessly between channels- from using the app, to receiving emails, to visiting a blog on the web and then to engaging via social channels like Facebook and Twitter.
- Safeway has done a very effective job of using modern marketing to tie in their store experience with their loyalty program in the Just4U program. Safeway has set up an email program that sends me my special āJust4Uā coupons every few days, also sending other loyalty offers around things like the awesome Chevron/Safeway gas savings and more. These emails probably have a very high open and engagement rate. As a consumer, Iāve come to look forward to receiving my weekly offer email from Safeway. This has caused increased customer engagement with the app (The link in the email takes me directly to the mobile site, or the offers can also be accessed via the app.) The other behavior that Iāve adopted is that I open that app while in the physical store to make sure Iāve added the Just4U offers to my Safeway card in order to get the discounts. Iāve found that Iām now purchasing things I didnāt originally intend to, based on the good deals promoted within the app/Just4U program. So I may just be a gullible consumer, but as a marketer, the example is a powerful one of a strong loyalty program tied to marketing automation in a variety of channels- email seamlessly tied to a mobile app- ultimately increasing my usage of the mobile app, encouraging me to use the app over a long period of time (weekly for at least a few years now.) and ultimately increasing my customer lifetime value for Safeway.
- Safeway has set up an email program that sends me my special āJust4Uā coupons every few days, also sending other loyalty offers around things like the awesome Chevron/Safeway gas savings and more. These emails probably have a very high open and engagement rate. As a consumer, Iāve come to look forward to receiving my weekly offer email from Safeway. This has caused increased customer engagement with the app (The link in the email takes me directly to the mobile site, or the offers can also be accessed via the app.) The other behavior that Iāve adopted is that I open that app while in the physical store to make sure Iāve added the Just4U offers to my Safeway card in order to get the discounts. Iāve found that Iām now purchasing things I didnāt originally intend to, based on the good deals promoted within the app/Just4U program. So I may just be a gullible consumer, but as a marketer, the example is a powerful one of a strong loyalty program tied to marketing automation in a variety of channels- email seamlessly tied to a mobile app- ultimately increasing my usage of the mobile app, encouraging me to use the app over a long period of time (weekly for at least a few years now.) and ultimately increasing my customer lifetime value for Safeway.
- The last example is lately one of my personal favorite apps- the Starbucks Mobile app. Starbucks has a great loyalty program that is powered via their mobile app. I got pulled into this great marketing by downloading the app- and then to get to āGoldā status you have to get 30 points (buying 30 coffees). I used to drink Starbucks maybe once or twice a week- now I buy it nearly every day of the week to get my gold stars and points. Once you achieve gold status, you get a free item every twelve (12) stars- so this loyalty program has dramatically increased my purchasing of Starbucks. Starbucks also uses marketing automation by sending emails when I downloaded the app- with tips on ways to earn more stars and engage more with the app, with notices of rewards (I bet these have a very high open/click rate!) and even sending me birthday announcements (emails triggered off of a great data point- my birth date.) Also, Starbucks has tied this excellent mobile experience with the offline stores by making the mobile app a vehicle for payment in the stores, and also using a connection with a vendor to send out actual physical gold cards- (image below). I was so excited to get the physical gold card- a minor thing, but talk about increasing brand loyalty. I commend Starbucks for creating a wonderful loyalty program, mobile experience, mobile payment system and excellent program orchestration across channels, offline and online- to create a more enduring relationship with me. Starbucks has truly used marketing automation to increase retention on their app, and increase customer LTV and brand loyalty.
- The last example is lately one of my personal favorite apps- the Starbucks Mobile app. Starbucks has a great loyalty program that is powered via their mobile app. I got pulled into this great marketing by downloading the app- and then to get to āGoldā status you have to get 30 points (buying 30 coffees). I used to drink Starbucks maybe once or twice a week- now I buy it nearly every day of the week to get my gold stars and points. Once you achieve gold status, you get a free item every twelve (12) stars- so this loyalty program has dramatically increased my purchasing of Starbucks. Starbucks also uses marketing automation by sending emails when I downloaded the app- with tips on ways to earn more stars and engage more with the app, with notices of rewards (I bet these have a very high open/click rate!) and even sending me birthday announcements (emails triggered off of a great data point- my birth date.) Also, Starbucks has tied this excellent mobile experience with the offline stores by making the mobile app a vehicle for payment in the stores, and also using a connection with a vendor to send out actual physical gold cards- (image below). I was so excited to get the physical gold card- a minor thing, but talk about increasing brand loyalty. I commend Starbucks for creating a wonderful loyalty program, mobile experience, mobile payment system and excellent program orchestration across channels, offline and online- to create a more enduring relationship with me. Starbucks has truly used marketing automation to increase retention on their app, and increase customer LTV and brand loyalty.
- 14% of Starbucks purchases in US Stores came from itās app- if they do $15BB a year worldwide- the US has about 50% of all locations- so 7.5BB from the US. That is roughly $1BB coming from sales via the mobile app.
- I walked through three small businesses (MyFitnessPal and thredUP) and two very large businesses as case studies today- but the practices are similar for both. This methodology can be applied to any company with an app. For example, my car dealer, Lexus of Stevens Creek (Part of Penske Group) has an app that allows me to see inventory, schedule service appointments, get roadside assistance etc.