how to create a successful mobile business to achieve maximum user engagement?
TRANSCRIPT
| Page 1 April 23rd, 2015
Apps World Germany | Dr. Tilman Buchner | April 23rd, 2015
How to create a successful mobile business to achieve maximum user engagement ?
| Page 2 April 23rd, 2015
... there is no long and stable operating history from which to make the forecast. The longer and more stable, the more you can plan.
Is it possible to plan success in the Mobile Ecosystem? It’s not impossible but difficult, because ...
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.. we have to deal with uncertainty. This means we need a new understanding how to measure progress in product development.
The Mobile Ecosystem Challenge Because accurate forecasting is difficult ...
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If you cannot plan success – what to do? Start experimenting! You can gain a competitive advantage if you learn fast. Which means executing as many experiments ...
... as possible in a short period of time !
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Product Market Fit Before you start thinking about growth, validate your idea. Use methodologies like 5-Day Product Discovery.
Day 1 Day 2 Day 3 Day 4 Day 5
Understand
Exploration
Decide
Prototyping
Validate
• Problem Interview: Speak with potential customers about their needs and context
• Tools: Lean Canvas
• Generate as many ideas as possible – go wild!
• Tools: Cracy8, Paper prototype
• Solution interview: Ask potential users about feedback to your ideas
• Consolidate your ideas to one product
• Usability test: Test it as if it was real
• Usability Lab Don’t ask the user – watch his behavior!
• Build a high-fidelity prototype
• Tools: Facebook origami, Keynote, etc.
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0%
20%
40%
60%
80%
100%
0 1 2 3 4 5 6 7
% a
ctiv
e
days after install
If Product Market Fit is achieved, try to understand the cause and effect of your digital product ...
In a next step of development you have to figure out:
- Who is using your product?
- What is the most effective customer acquisition channel?
- What are the most used features in your digital product?
- Is your K-Factor > 1?
Product A has Product Market Fit
Product B does not have P/M Fit
Product A
Product B
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Well done! You have identified a customer need. Now its time to think about how to scale your business ...
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STEP 1 Get to know your customers
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Use random traffic and start collecting user information about device, location, frequency of use, and session length but also business specific user events ...
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Next start digging for gold. Create customer segments and identify the high performers (early adapters) in your user base …
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Vanity Metrics to watch out for • Number of unique users 100 • Total Video Views 1.531 • Average no of Video Views per user 15,31
Ac3onable Metrics apply basic mathema3c sta3cs analysis (Percen3le) % of TOP Performers generaBng 50% of overall traffic 15,5% Derive TOP Performer Segment based on graph 24% • % on Top Performer segment on total Video Views 68% • No of Video Views of TOP Performer segment 1037,68 • Average no of Video Views of Top Performer 43,24
Cumulated Video Views
50%
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1 7 13
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68%
24%
15%
Go the extra mile! Make a deep dive analysis. Use ACTIONABLE not VANITY metrics to draw conclusions …
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Announced on f8 conference 04/2015: Facebook Analytics First tool which supports Percentile Analysis
Source: facebook.com
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Eliminate the Low Performer, develop the Standard Performer and strengthen the Top Performer segment by mapping User Properties with possible targeting criteria in ad networks like facebook ...
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STEP 2 Attribute your downloads by channel/marketing campaign and analyze how well each user performs beyond the install.
Assumptions: 1025 User | 23.844 Video Views | 10 EUR TKP | Lifecycle 3,5 month
0
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1 31
61
91
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1 35
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3 13
7 17
1 20
5 23
9 27
3
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1 16
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1 18
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1 6 11 16 21 26 31 36 41 46
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1 4 7 10 13 16 19 22 25 0
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1 4 7 10 13 16 19 22 25
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1 6 11 16 21 26 31 36 41 46
SEO
Organic
Source: MixPanel
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We care a lot about marketing to generate DOWNLOADS but who cares about what happens after the download?
Stopping at downloads is the same as stopping at site traffic. The real data is about user engagement.
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100%
38% 29%
24% 20% 16% 14% 11%
0%
20%
40%
60%
80%
100%
120%
0 1 2 3 4 5 6 7
% a
ctiv
e
days after install
Going beyond downloads We've built what we think is a great app, but do the people agree? RETENTION is the most important metric!
Onboarding Experience first impressions matter Nearly 22% of apps downloaded are never used more than once.
Decreased User Engagement
installed apps in average
apps used in the last 30 days
payed apps installed
28 11 6
Source: Google
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STEP 3 - How to build an Engagement Model? Start with a functional analysis and identify so called Engagement Trigger Points in your application …
Video on Demand
LiveTV
Administration
Engagement
Trigger Points
� Acquisition
� Action
� Retention
� Referral
� Revenue
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Try to think about possible user actions which indicate whether the user has already passed an Engagement Trigger Point …
User is familiar with the app and fully engaged
User is new to the app no engagement
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Is it possible to manage this process manually? No. An new market of so called Marketing Automation Solutions represents the new Super Power in the mobile ecosystem ...
§ Real –Time Analytics
§ Funnel Management
§ Customer Segmentation
§ Cohort, Percentile Analysis
§ Lifetime Value Tracking
• Acquisition Management
• Behavioral and Location Targeting
• Push Notification, Email
• In-App Messaging, Web Hooks
• A/B Testing, User Survey
App/Web Analytics Marketing & CRM
Get Insight
Take Action
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KEY TAKEAWAYS How to create a successful mobile business to achieve maximum user engagement?
• Do not waste time with business plans – go out of the building. Use 5-Day Product Discovery to achieve Product Market Fit, fast
• Get to know your customers, Use ACTIONABLE not VANITY metrics to draw conclusions.
• It‘s easy to waste a lot of money in the wrong marketing channels. Attribute your traffic and measure beyond the install.
• What happens after the download? First impressions matter, invest into a great onboarding experience.
• Make sure that „downloads“ turn into active (engaged) users. Use Marketing Automation Tools to enable Data-Driven CRM
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THANK YOU VERY MUCH FOR YOUR ATTENTION IF YOU HAVE ANY FURTHER QUESTIONS DO NOT HESITATE TO CONTACT ME Dr. Tilman Buchner Chief Mobile Officer ProSiebenSat.1 Group [email protected] +49 89 9507-8630