successful mobile app cycle

The Successful Mobile App Cycle

The Successful

Mobile App Cycle

Bilal Zaheer

June 29, 2015

The Successful Mobile App CycleThe Successful Mobile App Cycle

Perfect Apps Don’t Guarantee Success

Over 60,000 apps are uploaded to AppStore each month and an even largernumber on Google Play. This makes itextremely difficult for any app to standout or even be visible to users.

Even the most well thought out and perfectly made apps may not stand a chance without a well planned and executed strategy. Majority of them end up being “zombie” apps.

Although it’s a highly volatilescene, certain patterns haveemerged over the past yearsthat do significantly increasethe prospects for any app.

Not surprisingly, these patternsfor success have much to do withgood marketing strategy, closelytracking the important KPIs andcontinuous enhancements to theproduct.The most important factor for

success of an app is its activeusers.

29 Jun 2015 [email protected] 2


Developing the app is only the first step in the marathon.

Typical Lifecycle of a Mobile App

Launch Discovery Traction & Acquisition

Retention Half Life AnalysisMVP

Measure Everything

Enhance For Next MVP



Apps that do not generate enough downloads to make it to any of the 39,000 top lists on App Store.

This makes it very unlikely that such an app will be discovered and installed by users, resulting in near zero organic growth.

To make it to one of the top lists, an app has to be downloaded 80-100k within the last 24 hours.

Zombie Apps

In Feb 2015, 83% of the apps in App Store were Zombies, compared to 74% in Jan 2014. Primary reason: Poor “Discoverability”.- Adjust / Tech Crunch



The time it takes an app to decline to half of its peak MAU is considered its half-life.

Just over 50% of all apps reach their half life after 3 months.

Investing in growing MAU to highest peak possible, will result in a longer half-life.

Half-Life of Mobile Apps

Category Half Life (months)

News 7

Health, Fitness, Medical 6

Business & Communication 6

Tools / Utility Apps 5.5

Travel 4

Lifestyle 4

Media 4

Shopping 4

Social 3

Games 2

Peak MAU

Over 10,000 5

Less than 10,000 3

OS

iOS 4

Android 3



Maintaining retention and revenue, is a continuous iterative process, even more so for growth.

Maximum ROI can be achieved by following a well planned cycle of:measure > market > enhance

Retention & Revenue Wave

Active U

sers

/ R

evenue

No. of Months



Apps that are removed either by App Store or by publishers themselves. Eitherbecause they are in violation of terms & conditions of App Store, or discontinuedby the publisher/developer.

Over 20% of the apps are never opened more than once after download

Dead Apps

Category # Dead Apps Live Apps % Dead Apps

Games 65,643 237,389 21.7

Lifestyle 31,537 111,524 22

Entertainment 31,283 93,934 25

Education 30,261 128,823 19

Business 26,440 117,456 18.4

Utilities 21,701 65,380 24.9

Books 21,645 58,583 27

Kids 13,493 131,581 9.3

Travel 13,244 61,111 17.8



The AARRR metrics is one of the most effective framework, during the growth period.

This is the approached advised by Dave McClure, founder of 500 Startups.

This framework also coincides more directly with the steps of a user funnel.

The Pirate Metrics - AARRR

Acquisition Activation Retention Revenue Referral

User Funnel

No. of U

sers

Value of User



AARRR – Making The Connection

Acquisition

Activation

Retention

Revenue

Referral

How do users become aware of you?SEO, SEM, Widgets, Email, PR, Campaigns, Blogs…

Do drive-by visitors subscribe, use etc.?Design, Features, Tone, Compensation, Affirmation…

Does a one-time user become engaged?Notifications, Alerts, Reminders, Emails, Updates…

Do you make money from user activity?Transactions, Clicks, Subscriptions, DLC, Analytics…

Do users promote your product?Email, Widgets, Campaigns, Likes, Referral Traffic, Affiliates…

[email protected] 929 Jun 2015


“What I learned from Rockefeller that’s off-the-hookimportant is; You need to know exactly where youstand in a business at all times. Measure everything,because everything that is measured and watchedimproves.

- Bob Parsons, Founder Go Daddy

[email protected] 1029 Jun 2015


Tracking and optimizing for the right metrics is the key to acquiring and keeping users.

A careful selection of metrics and assigning suitable targets to them will result in KPIs that help measure achievement your goals.

Traction• Acquisitions (downloads per source)• Referrals (Virality)

Retention• Number of Times Accessed After Installation• Monthly / Daily Active Users

Engagement• Session Time + Session Gap• Social Shares• Screen Flow

Primary KPIs – Phase I

Over 80,000 downloads are required within thelast 24 hours to remain in an App Store Top List.

Over 20% of the apps are neveropened more than once. 60% ofthem are opened 10 times or less.

Engagement directly feeds intoretention as well as revenue.

Jeff Bezos insisted on measuringevery move made by the users, whenAmazon.com was being developed.



Loyalty

• Permissions Granted (e.g. access to Facebook info)• Referrals (Virality)

Revenue

• Lifetime Value• Total / Monthly Subscriptions• Total / Monthly “Pay Per Post” Purchases• Conversion Rate

Performance

• Response Time (of backend system

Primary KPIs – Phase I

Direct indication of user’s trust in the app.

Referrals not only build tractionthey are also an indication of user’sinterest in the app and loyalty.

Best indicator of ROI in general,and how much more can be spenton additional acquisition.

Slow response time will quickly lose user-base.



“Marketing has always been about thesame thing – who your customers areand where they are.”

- Noah Kagan, Founder AppSumo



Putting Things Into Action

MARKETINGANALYTICS

Real Time Analytics

Funnel Management

User Segmentation

Engagement Analysis

Lifetime Value tracking

Acquisition Management

Personalized In-App Messaging

Push Messaging

A/B Testing

Location & Behavioral Targeting

Get Insight

Take Action



Bilal Zaheer – Chief Strategy Officer


Entered the world ofprogramming in 1984 atthe age of 12, by sellingoff all his toys to get aCommodore 64.

Started developing web applications in 1994 as anundergrad student of Computer Science. The onlygraphical web browser in existence was Mosaic.Jerry and David had just dropped out of Stanfordto build their web directory which was laterrenamed “Yahoo!”.

As regional development manager, oneof the key persons responsible forestablishing the Asia-Pacific presenceof the world’s leading travel portal,Travelocity. A $70 million projectfinanced by 11 leading regional airlinesof Asia-Pacific.

Lead all online activities for 15 countries in 5languages for Philips Electronics, Asia-Pacific,including online campaign design anddevelopment, and online CRM with assistancefrom the world’s leading agencies includingOgilvy & Mather and Tribal DDB, and techsupport from Atos Origin, IBM and HP.

Established his digital agency in Singapore while doinghis MBA in 2005, that specialized in social apps.Generated over $5 million through the agency and wonthe coveted right to be the authorized regional vendorfor Philips Electronics, Covidien (formerly TycoMedical), and Ministry of Youth and Culture.