If your mobile marketing campaigns are not yielding measurable results that help your profitability and business growth, you’re wasting time and money. The aim of mobile marketing should not just be to create beautiful visuals and marketing materials, it should be to find new customers, retain current ones and increase your business’ revenue
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:
4 Main KPIs to track in your mobile marketing
1. (Cpi/Cpa) Cost per Install and Cost per Acquisition
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. (CLTV) Customer Lifetime Value
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. (DAU) Daily Active Users
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.
4. Impact on Revenue
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.
If you want to improve your mobile marketing efforts, you need to start using analytics and tools to ensure that your efforts are targeted and scientific and that you have statistics to help you make sound decisions. Using analytics can help you to see which of your efforts are working and which are not, giving you the information you need to redirect your strategies. Contact WSI OMS, mobile marketing experts, to help you to adapt and refine your campaign.