What’s All the Hype About Mobile Marketing?
So… you have a mobile platform and you are curious about social advertising? First of all, to start, just about everyone you know has a cell phone. Did you know that 51% of those people use it as their soul source of research? It appears your website is doing well, you’re getting hits, generating revenue and life is good. How do you know that the money you spend on mobile digital marketing provides a good return on investment? There is a growing concern over how to measure that return on investment (ROI). What do businesses look for to ensure that their money is well spent? In order to do that, we need to break down what to look for to measure the potential return on investment in the realm of digital marketing.
Do What You Can to Reach Customers, Build Solid Relationships, and Understand the User Experience
As a business, it is important to put yourself in your customer’s shoes, try to understand the user experience. Have you done enough to attract customers, and inspire them to build that relationship with your brand? Some have heard that the user should feel like they are a part of a community. This requires a host of mobile marketing techniques from emails, to video, and social networks. But all that doesn’t mean anything if your mobile media is hard to use, clunky, and out of date.
Mobile App versus Website Use
Business Owners should keep in mind that a mobile app has a shorter lifespan than a website. It is essential to ensure that the website is cost effective. How you do that? You will have to budget for constant updates. In this age of digital media, we already stated above that people spend at least 51% of their time on mobile devices and only 42% on desktops. Mobile apps grew 90% in a two-year span from 2013 – 2015. Despite this growth, the look, feel, and comfort of a website still has consumers more likely to complete a purchase on their desktops instead of over their mobile device. Therefore, in this day and age, to be relevant, you must have a mobile marketing campaign. Also, you must understanding the user experience as this help you to understand ROI.
Retention and Key Performance Indicators
Once your business enters into a digital marketing campaign, and you bring on customers, and then inspire them to utilize your brand, how do you know when a customer is sticking around? Finding out the retention rate is a good place to start.
How to Calculate a Retention Rate
You calculate a retention rate by using the percentage of users who continue to engage with your app after a period of time that you define. Basically, the percentage of users who visit your app on Day 1, Day 7, and Day 30. Within that same mode of thinking there are a variety of key performance indicator’s to consider to assist with your business ROI.
Conversion Rates Per Impression
Conversion rate per each impression measures the ratio of installations between impressions… or, how often your ads are being shown. And, install to registration is the number of users who register an account to your mobile media after installation.
Each item that monetizes is known as the conversion rate, and it determines how well your app’s in-app purchases sell or don’t sell. However, there are more things to consider, such as the number of unique visitors to your site, number of page views, and how long visitors stay on your site along with how many pages they visit.
Known Performance Indicators are Key to Business
Without defining these KPI’s and understanding the analytics, your business will never understand the maximum return on your advertising spending. Keep in mind that currently only 51% of companies measure user engagement and ROI, your business needs to be ahead of the curve.
Mobile vs Desktop
One of the great benefits of utilizing mobile marketing is the efficiency and ultimately, the time you save. This is a large reason that many businesses go mobile and can be a huge advantage to building the bottom dollar. Currently, businesses average about 6% of marketing budgets to mobile, in 2018 was up to 15%. It is worth noting that most companies prioritize digital marketing to this point that is spread across all standard digital channels, and they longer break out the tracking on proformas.
Is Email Still a Profitable Digital Channel?
Email is losing popularity and will most likely dip some more as technology move forward. However, email has an average ROI of $38 for every 1$ spent. This is not a bad return on investment. Engagement continues to increase with email, even without mobile devices. With all that said, mobile marketing still rules the roost, but desktop and email marketing are good old standbys that still provide big cost savings.
How to Evaluate Building Customer Retention
As we review the points above, building customer relationships and understanding the user experience, is key to customer retention. The key performance indicators, by utilizing both mobile and the trusty desktop marketing, helps the business owner to get a better understanding of what an ROI looks like on marketing before you spend the money.