Mobile User Aquisition (Web Summit 2014 presentation)

LET’S GET GROWING

MOBILE USER ACQUISITION

ALKARIM NASSER (@ALKARIM) CO-FOUNDER & HEAD OF PRODUCT @ GALLOP LABS

The app marketplace is increasingly crowded and more competitive than ever before.

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Startups focus heavily on product but another real challenge is with distribution.

- Dave McClure

De-mystifying the “if you build it they will come”

mindset.

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I’LL TAKE BUZZWORD FOR 500

Lean Marketing

Growth Marketing

Agile Marketing

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WHAT EXACTLY IS GROWTH HACKING?

TRADITIONAL PARADIGMS

Hindsight

Focus on the Masses

Spray & Pray

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NEW PARADIGMS

Near Realtime

Focus on users

Date-Driven

Scalable

Automate

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WHAT IT ISN’T?

Efficiently acquire the most productive users.

Continually engage and

delight users.

Re-engage lapsed &

infrequent users.

Maximize revenue by

understanding and effectively

connecting with users.

Acquisition Engagement Retention Revenue Referral

Build the right triggers to encourage sharing and

organic growth

GROWTH AT EVERY STAGE

HOW IS YOUR APP GOING TO WIN?

The role of a UA expert

UA is a different kind of product manager

Building with the App Store

Partnerships +

Integrations

Tapping into Organic Growth

The role of Paid Media

Managing the Economics of UA

The Evolving UA Strategy

OUR PLAN FOR TODAY

!

Becoming a UA Jedi

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Don’t operate in a silo.

RULE #1

Engineering !

ProductMarketing

THE CHINESE WALL

ANALYTICS

THE CHINESE WALL

Engineering !

ProductMarketing

3rd Party Data and Tools

THE CHINESE WALL

ANALYTICS

Engineering !

ProductMarketing

DEVELOPER + MARKETER

DEVELOPER GROWTH HACKER MARKETER

DEVELOPER

GROWTH HACKER

MARKETER

DATA ANALYST

DEVELOPER + MARKETER + DATA

“Growth hacking is a recognition that when you focus on understanding your users and how they discover and adopt your products you can build features that help you acquire and retain

more users, rather than just spending marketing dollars” !

- Josh Elman, Greylock Partners

In other words…

data! data! data!

Returning

Card Creation

Shipping Information

Returning

Landing Page

To Me

Payment

Delivery

Reminder Email

One Time Trial Unsocial Buyer

Open Rate

Call to Action

Unsatisfied

Abandoned

Bounced

Not Interested

Sharing

ViralSearchPaid Direct

Facebook Sign-in

To Friend

Payment

Delivery

UNDERSTAND THE CUSTOMER JOURNEY

Returning

Cards Created: Users - 6,347 (22,650 total)

Shipping Select - 3,390

Returning 3,916

Landing Page - 23,460 totals

Me 1,856

1,083

Reminder Email

One Time Trial Unsocial Buyer

Open Rate

Call to Action

1,412

3,133

14,733 (63%)

2,204 (26%)

1,978

Viral 314

Search 131

Paid 13,906

Facebook Sign-in - 6,523 (Unique)

Them 1,534

895

1,978

176

1,2085,139

1,749

Email 433

FB Post 206

Direct 4527

1,978 OGA’s

1,447 “Peeks”

Billing: 54

8,727 (Total)

TIGHTEN LEAKY FAUCETS

START WITH THE END IN MIND

Growth Hackers are focused on outcomes:

LTV

ROI

MAU/DAU

Organic Growth

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FIND GOOD USERS

TIME TO FIRST PURCHASE

MODEL USER BEHAVIOUR

FIND AT RISK USERS

CHURN PREDICTION

OTHER USER SEGMENTS

ENGAGEMENT PREDICTION

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!

Owned

!

Earned !

Paid

MOBILE APP MARKETING

HOW HOTMAIL “PWNED”

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“Get your free email with Hotmail.”

HOW HOTMAIL “PWNED”

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!

Leveraging the App Stores

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THE GATEKEEPERS

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Getting featured is not the end all of user acquisition strategies. It is icing on the cake and is validation you built a good product

THE GATEKEEPERS

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Small centralized team App Store editorial run by independent teams within

each country

PENTRATING THE BLACK BOX

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Study the UI/UX guidelines and platform specific design patterns.

GETTING FEATURED #PROTIP

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Making them apart of the process

GETTING FEATURED #PROTIP

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Leverage core hardware and OS-related features in your application

GETTING FEATURED #PROTIP

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Giving users fishing rods to lure in new users

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1. We share to craft our identities 2. We share to build relationships 3. We share to make our lives easier/better 4. We share to help others !

!

Build Something Your Users Will be Proud to Share. !

WE’RE ALL SOCIAL

Facebook log-in provides a simple and easy way to sign into apps without creating new usernames and passwords.

http://techcrunch.com/2013/08/22/facebook-permission-post/fb-infographic/

FACEBOOK INTEGRATION

Social integration is about allowing your user base to share and incite conversation

Community/Social Integration

Sharing Inviting Friends

Integrating friends into the in-app

experience drives engagement

Creating open graph and wall

post actions around favoriting

items creates conversation

Encourage your user base to share the app with their

friends

A GREAT SOCIAL INTEGRATION

CASE STUDY

A STRONG REFERRAL PROGRAM

!

Partnerships + Integrations

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Scratch my back, I’ll scratch yours

WINNING WITH PARTNERSHIP

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Find complimentary products understand their objectives and collaborate

WINNING WITH PARTNERSHIP

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PIGGYBACK ALL THE WAY TO THE BANK

http://www.slideshare.net/morganb180/growth-hacking-101

THE BEST OF

PIGGYBACKING ALL THE WAY TO THE BANK

!

Ready to hit warp drive?

Paid Media.

CPM - Cost per Mile User sees a banner add for your campaign

!

CPC - Cost per Click User clicks on a banner ad within a campaign !

CPI - Cost per Install User successfully installs an application through a campaign !

CP(X) - Cost Per (Any Important Event) User successfully performs an action through a campaign (liking a FB page) !

!

LEVERAGING PAID MEDIA

Not all media is made equally

LEVERAGING PAID MEDIA

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You can spend anywhere between a few cents to several dollars to get your message in front of users

DriversType Industry Targeting

Quality Demographic Network

BE PREPARED TO SPEND

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1. Grow Awareness

TOUGH TRUTH ABOUT PAID MEDIA

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1. Grow Awarenessor

2. Grow Users

TOUGH TRUTH ABOUT PAID MEDIA

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A Division of

Media Effectiveness

40% of the Top 100 grossing apps used Facebook Mobile Ads

A Division of

WIN WITH DATA

Performance driven: • Assess the impact of advertising by tying spend to conversion (cost-per-install) & ROI

!

Reach your audience at the right time with the right message.Precise targeting (90% accuracy vs 50% cookies on the web):

• Based on a user’s real identity • Device specific: iPhone, iPad & Android • Broad & precise targeting: Gaming (social/online), competitive users, early adopters etc.

Target specific users and look-alikes of those users:

• Use email lists, device ids, fb ids to target via custom & look-alike audiences • Target friends of current users

GROWING THE RIGHT TYPE OF USERS

Downloads per day required to reach top rankings in US app store: !

Top 10: 70,000 downloads per day Top 50: 23,000 downloads per day

CPI vs. eCPI

A Division of

• Refresh Creative 2-3 times per week • Average Facebook ad has a peak CTR in the first 72 hours • 37% of advertisers refresh creative once every 5-14 days

KEEP IT FRESH

A Division of

!

• Impactful imagery: Lifestyle and/or screen shots • Visual: Images with less than 20% text • Action-oriented: Powerful call-to-action

AD CREATION #PROTIP

The economics of media

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Customer Acquisition Cost (CAC) How much you spent to acquire a user !

Life Time Value (LTV) What is the average revenue accumulated over a user’s lifetime

SUSTAINABILITY

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spend paid users CAC =

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UNDERSTANDING YOUR COST OF ACQUIRING A USER

100 10 CAC = = $10/customer

!

K-Factor For each user, how many news ones do they create?

VIRAL LOOP

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spend paid users+(paid users*k) CAC =

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CAC = = $5/customer100 10+(10*1)

DRIVE COST DOWN WHEN YOU DRIVE SOCIAL UP

http://www.dtelepathy.com/blog/design/design-viral-growth

VIRAL LOOP

K = x 20% = 15

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sustainability: CAC <= LTV

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OPTIMIZING FOR GROWTH WHILE FOCUSING ON SUSTAINABILITY

Pre Launch Build Channels Customer Generation Prototype Validation FB Group Launch Rock Kickstarter

Build Momentum Social Media Owned Channels Word of Mouth PR App Store

1+1 = 3 Paid Media (acquisition) Partnerships/Integrations Focus on Sustainable Spend Optimize Viral Loop

World Domination Paid Media Optimize Viral Loop Cross Platform Optimization

GROWING ON A BUDGET

FINISH FIRST

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APPLY FOR ALPHA PROGRAM TODAY

A@GALLOPLABS.COM @ALKARIM

LAST BUT NOT LEAST

• An app’s stickiness is conveyed by the distribution of individual event numbers for a set of users

• The app stickiness metric is a model based on thermodynamics that relates an application to a closed system

• It’s purpose is to establish a benchmark for how sticky an app is and to monitor changes in stickiness based on product or marketing activities

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APP STICKINESS

Temperature (T) = What’s the frequency at

which your users are interacting with the app?

!

Entropy (S) = What’s the tendency of the

population to interact?

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Potential (Z) = How much is user apathy

holding back your app’s full potential?

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Energy (U) = What level of energy of user

experience is your app really delivering?

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U = T x (Z - S) is the formula that

measures an app’s “stickiness”

(according to the laws of thermodynamics)

!

The key for any mobile app business is

monitoring changes in product energy U in

response to:

(i) changes in App features

(ii) changes in audience composition (e.g.

month-to-month, campaign-to-campaign,

etc)

APP STICKINESS

APP STICKINESS