measure your app's success: going beyond user analytics
DESCRIPTION
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.TRANSCRIPT
MAY 20, 21 2013 // SAN FRANCISCO
Beyond User Analytics
AGENDA
Why user analytics?
Evolution of analytics
User economics and the ARM model
Roles
Takeaways
Press coverage
Well, shit.Well, shit.
Awesome.
What mattered in the 1990s…
Eyeballs
Page views
What mattered in the 2000s…
People
What matters now…
Britney Spears evolved, so did user analytics
Web 2.0 (00s)Page views
Click, ActionsSearch
AdvertisingCPC, CPA
Web 1.0 (90s)Eyeballs
ImpressionsBanner ads
CPM
Web 3.0 (10s)People
UsersUser Ads,
CouponingCAC, LTV, ROI
Introducing Mobile Customer Intelligence
It’s about creating the perfect customer experience
The key innovation:Calculating user value
One formula to rule them all…
If you are trying to make money…
Lifetime Value per User
(LTV)
Acquisition Cost per User
(CAC)>
If you are trying to reduce costs…
Cost per Transaction
(mobile)
Cost per Transaction
(offline/web)<
If you are trying to increase loyalty…
Churn per User(mobile)
Churn per User(non-mobile)<
“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
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
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
Phase 3: Identify a marketing plan
Focus on channel experimentation, cohort analysis
Optimize for “high-value” users
Track performance through CAC, ARPU, and eLTV per channel/campaign
0 8 16 24 32 40 48 56 64 72 80 88 96 104112120$0.00
$2.00
$4.00
$6.00
Now we can calculate user economics
Time Since Install
AR
PU
LTV
CACProfit
Phase 4: Go to market, iterate, and profit
Focus on collaboration, rapid development cycles, data-driven decision making
Track performance through LTV and CAC
User analytics spans across the org
Marketing TeamMeasure and optimize your user acquisition
campaigns with insight into full funnel KPI’s.
Production/EngineeringAnalyze how different cohorts of users interact with
your application, and pinpoint the places to optimize
that have the greatest impact.
C - LevelStay on top of the important data points and
trends that are core to your business success.D A S H B O A R D
Business IntelligenceDeep dive into your user data using our data
mining tools.
User analytics spans across the org
C - LevelStay on top of the important data points and
trends that are core to your business success.D A S H B O A R D
C-levels: Keep an eye on your business
User analytics spans across the org
Production/EngineeringAnalyze how different cohorts of users interact with
your application, and pinpoint the places to optimize
that have the greatest impact.
D A S H B O A R D
Product managers:Test, measure, iterate
User analytics spans across the org
Profitability
Marketing TeamMeasure and optimize your user acquisition
campaigns with insight into full funnel KPI’s.
D A S H B O A R D
Marketers: Insight into acquisition ROI
User analytics spans across the org
D A S H B O A R D
Business IntelligenceDeep dive into your user data using our data
mining tools.
Analysts: Mine, explore, discover
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!
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
MAY 20, 21 2013 // SAN FRANCISCO
Questions? @kontagent@shamantri
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