As fun as mobile marketing campaigns can be, they have no use unless they actually yield measurable results related to the growth and profitability of your business. Mobile marketing is there to boost the acquisition of new users/customers, and the retention of existing ones, and to aid in increasing your business’s revenue and/or profit.
Perhaps the above is stating the obvious, but how do we actually measure these variables? Well, in order to do so, you need to focus on a set of central key performance indicators (KPIs). Here are the four main KPIs your mobile analytics should be tracking daily so as to ensure you aren’t just ‘winging it’ with your marketing efforts:
- Cost per Install and/or Acquisition (Cpi/Cpa)
This is a question of the feasibility and profitability of your business, as well as the cost-effectiveness of your mobile marketing. Whatever analytics system you are using, make sure it can tell you exactly how much it costs you to acquire one new user/customer. You can then adjust your marketing budget accordingly or, if all goes well, have real figures to take to your finance department when they question your ad spend.
2. Customer Lifetime Value (CLTV)
This crucial metric tells you how much gross profit is generated by a single customer over the entire time you are doing business with them. It’s calculated by multiplying the average period payment (say your monthly or annual subscription fee) by your average gross margin and the number of periods the customer is expected to be with you. Together with your CPI/CPA measurements, this metric enables you to work out and project the profitability of individual users and groups of users. This helps you know where to focus your marketing and customer retention efforts.
3. Daily Active Users (DAU)
Acquisitions are fine. But, they mean little to your business in the long run if they don’t translate to consistent, regular customers. This KPI enables you to see how many active customers you have and to set goals for their retention, as well as for the addition of new active customers and the targeted acquisition of more.
What is the net impact of your mobile marketing on overall revenue for the business? This is something you can and should measure. It is perhaps the simplest KPI to measure. The figures acquired from this, together with your user data, will often enable you – or your analytics software – to calculate the three KPIs above, as well as a range of others.
The beauty of mobile marketing analytics is that they offer the tools to use marketing in a targeted and scientific way, with the stats to back you up. They also help you to adjust your strategies by giving you clear indicators of what works and what doesn’t.
WSI are experts in mobile marketing. Contact us to refine your campaign.