October 10, 2018
The State (and Future) of Digital Marketplaces
Competing in the app stores nowadays is extremely, extremely tough. Branch Metrics’ CEO Alex Austin recently touched upon this in a great story that has been resonating throughout the industry. It’s not all bad news, though. We’ve put together an infographic which frames how brutal the app store competition is but how personalized messaging can help brands of all sizes stand out.
Let’s get the bad news out of the way: app stores are very crowded. There are more than 3 million apps in the App Store and Google Play alone, and that number is expected to grow rapidly. In fact, there are more than 1,400 apps submitted every day and data shows that without a strong engagement strategy, up to 87% of those who do install your app don’t become high-value customers. The days of simply submitting an app and having it become an overnight success are long gone.
The good news? Brands of all sizes are seeing a major impact on retention and long-term value with an intelligent communication strategy, according to data from The Kahuna Mobile Marketing Index: Q3 2015. Intelligent communication means brands are marketing by engagement state with relevant messages across channels.
The Kahuna Mobile Marketing Index includes data from more than 400 million user profiles and it found that intelligent communication leads to a 51% retention rate over 30 days, which is a 123% uplift over those who don’t use personalized messaging. This retention boost can be even more impactful in specific verticals, as retail, finance and travel apps with personalized messaging had 2X the 30, 60 and 90-day retention rates of those without it.
Overall, every app category utilizing personalized messaging found a 186% retention uplift over 90 days.
A key component of an intelligent communication strategy is using push notification correctly and this includes getting customers to opt-in to receiving your push messages. The latest Kahuna Mobile Marketing Index reveals that 64% of Android, iOS users opted in to receiving push.
Those numbers vary greatly by platform: Android had an 85% push notification opt-in rate while iOS had a 50% opt-in rate. This is likely because Android users are opted-in by default, while iPhone users have to specifically opt in to push notifications for each and every app.
Because mobile is such an intimate device and the push notification channel is so powerful, only 0.2% of those who received personalized messages then opted out. This indicates that customers are happy to receive these messages but only if it’s relevant and personalized.
If you’d like to learn more about how an intelligent communication strategy impacts mobile marketing metrics, please download The Kahuna Mobile Marketing Index: Q3 2015. Also, please share this infographic with anybody you think will find it useful.
[Click on infographic for full size]