MARIO VIVIANIT E C H N O L O G Y E V A N G E L I S T, A M A Z O N A P P S T O R E U K
@mariuxtheone marioviviani
5 BEST PRACTICES OF TOP-EARNING MOBILE APPS AND GAMES
I T ’S A -ME!
Mar io V iv ian iTechnology Evangelist, Amazon Appstore UK@mariuxtheone
Android Developer from 201095+ apps published12,000,000+ downloadsGoogle Developer Expert 2013-15Startup Founder, Co-WorkerSpeaker at: Droidcon, Android Dev Days, Google I/O 2015
Take Care of Your Best Customers1
Casinos Defined Common Terms
Whales, Dolphins, Minnows
Monetization strategy is segmented, based on different customer experiences at different price points.
F2P:• Minnows = 90-98% of users• Dolphins = 50% of revenue• Whales = 3-4% of paying users (<0.1% total)
Source: GGV Capital, Feb. 2013 — http://bit.ly/1Ldu5Fu
Power-Users AreNot New
Well-Known across Industries
Mobile isn't the first industry to recognize the importance of highly engaged customers.
They Spend on the Things They Love
Substantial Spenders
When it comes to their passion (whatever it may be), power-users spend more money than the average fan.
What Do They Look Like to Us?
Amazon Appstore Power-Users
• Spend $50/month or more• On average, spend >$200/month• Are concentrated in US, Japan, UK, and
Germany
Source: Amazon Appstore
Power-Users Are Loyal to a Few Apps
Focused Passion
In January:80% of customers who spent $1,000 spent 75% (or more) of that on just two titles.
Source: Amazon Appstore
Offer Specials and VIP Exclusives
Reward that Loyalty
Give your most dedicated customers something extra, whether it be a special discount, early access, or maybe exclusive content.
Understand the Connection
Emotion & Spending
Knowing why they buy is critical to making your app attractive to power-users—and more importantly, worthy of them.
Connect with Who or What You Admire
Stand Out, or Fit In?
Go big: Identify with someone, a broader community, or something that inspires you.
Go small: Establish yourself as part of an elite tribe.
TAKE CARE OF YOUR BEST CUSTOMERSStrategy #1
• Recognize the importance of the "vital few"
• Reward loyal customers as VIPs
• Satisfy their emotional desires
Make It Easy to Buy2
0 24 48 72 96 120 144 168 192 216 240 264 288 312
EARLY ENGAGEMENT IS CRITICALIn-App Purchasing by Hour
Source: Amazon Appstore
Hours since download
18%
Total customer value
KEEP CUSTOMERS ENGAGEDIn-App Purchasing Adds Up over Time
Source: Amazon Appstore
Engage customers early 37% of customers who will purchase, do so on day 0
Keep them in the app 48% of repeat purchases happenwithin one hour of a previous purchase
Give them a reason to come back 64%
of revenue comes from 3rd order +
74%
of revenue occursafter the first 7 days
56%
of revenue occursafter the first 30 days
1-5 Items 6-10 Items 11-15 Items0%
20%
40%
60%
80%
100%
120%
140%
160%
69%
100%
145%
SELECTION DRIVES REPEAT ORDERSMore Is Better
Source: Amazon Appstore
# of In-App Items for Sale
ARPPUINDEX: Average = 100% 1.14%
of customers generate30% of sales
1 3 5 7 9 11 13 15 17 19 21 23 25 27 290%
20%40%60%80%
100%120%140%160%180%
Source: Amazon Appstore
Days Owned
+60%
averageselling price
REGULARS SPEND MOREPrice Sensitivity Declines over Time
Conversion RateINDEX: Average = 100%
1-5 6-10 11-150%
50%
100%
150%
200%
147%
100%
52%
Price Points
MANY PRICE POINTS MAY BE CONFUSINGOffer Price Variety, but Not Too Much
Source: Amazon Appstore
“
What are the top-grossing developers doing differently?
COHORT ANALYSISDifficult to Compare Apps Directly
• Based on Behavioral Analytics• Shared experience• Usually limited to a specific time period• Related individuals form "cohorts"
• People who had measles at age 9• Tall pilots who flew for BA in March• Customers who purchased within one week
of download
Examples
COHORT ANALYSISTop Earners vs. Everyone Else
Looking at all customers who installeda Freemium app on a specific date.
Split into to two populations (cohorts):
Cohort 1: Top 50App or game was one of the Top 50 Highest-Grossing titles
Cohort 2: The RestApp or game was NOT one of the Top 50 Highest-Grossing titles
Top 50
The Rest
0 1 3 7 14 300%
20%
40%
60%
80%
100%
120%
140%
160%
Days Since Installation
Rel
ativ
e P
erfo
rman
ce
SALES & REVENUEPurchase Count x Average Transaction Amount
Source: Amazon Appstore
“
Does item quality alone account for the difference in average IAP transaction amount?
ASSORTMENT BY PRICE POINTTotal Marketplace
$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99 0%5%
10%15%20%25%30%35% 31% 29%
7%12% 11%
5% 3% 1%
14%11%
6%3%
16% 16%11% 9%
% of Assortment % of Sales
Source: Amazon Appstore
ASSORTMENT BY PRICE POINTTop 50 Only
$0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99 0%5%
10%15%20%25%30%35%
28%
15%10%
13% 11% 9% 9%5%
32%
19%
7%4%
10% 12%
5% 4%
% of Assortment % of Sales
Source: Amazon Appstore
MAKE IT EASY TO BUYStrategy #2
• Keep customers engaged
• Maintain a healthy selection
• Limit number of price points
• Offer higher-value items
Optimize the Experience3
REDUCE USAGE BARRIERSDon't Inhibit Frequent Use
Encourage Longer Sessions
Tune Usability / Difficulty
Too hard, and users will abandon. Too easy, they may get bored.
Top 50
The Rest
0 1 3 7 14 300%
10%
20%
30%
40%
50%
60%
70%
Days Since Installation
Act
ive
Use
rs
Source: Amazon Appstore
USER ACTIVITYAt Least One Session/Day over First 30 Days
Top 50
The Rest
0 1 3 7 14 300
5
10
15
20
25
30
Days Since Installation
Tota
l Min
utes
Source: Amazon Appstore
TOTAL TIME IN-APPSessions/Day x Average Session Length
Show Clear Value & Bonus Savings
Simplicity Sells
Use tabs and tiles to allow users to shop by item type, function, and price. Show “extra” value of more expensive items. Catalogs following this format raised ARPPU 75% over the store average.
Source: Amazon Appstore
Explain How to Purchase Items in Your App
Tutorials Really Help
The best tutorials show features and benefits of each items so the customer can gauge value, boosting conversion by up to 150%.
Source: Amazon Appstore
Show Customers How to Apply Their Purchases
Tutorials Really Help
Good post-purchase tutorials can have a dramatic impact on repeat sales. The best ones we saw showed 65% more repeat purchases.
Source: Amazon Appstore
OPTIMIZE THE EXPERIENCEStrategy #3
• Reduce usage barriers
• Tune usability / difficulty
• Simplify purchasing choices
• Explain how to buy items
• Explain how to use purchased items
Support Social Engagement4
Let Them Tell the World Why They're Great
Enable Status Updates
Users like to highlight in-app accomplishments and ascribe social status to the reactions they get from friends and followers.
Achievements and Leaderboards
The Lowest Bar for Social
A little friendly competition can be a powerful motivator to play longer and remain engaged.
SUPPORT SOCIAL ENGAGEMENTStrategy #4
• Let users share their activity
• Include achievements and leaderboards (games)
Encourage Advocacy5
Let Them in on Your Cool Plans and Updates
Communicate with Your Users
The right message at the right time can help you build a connection beyond a single app or transaction.
CELEBRATE USER ENTHUSIASMNurture Creative Expression
LET USERS EXTEND THE EXPERIENCEEnable User Contribution
Minecraft Trivia Crack
MERCHANDISEPhysical Goods
ENCOURAGE ADVOCACYStrategy #5
• Engage with influencers
• Celebrate creative expression
• Allow user contributions / content creation
• Offer branded merchandise
Quick Recap6
5 Strategies of Top Earners
1) Take care of your best customers.
2) Make it easy to buy.
3) Optimize the experience.
4) Support social engagement.
5) Encourage advocacy.
A M A Z O N A P P S T O R E D E V E LOP E R S U M M I T
DEVELOPER SUMMITOCTOBER
4TH CODENODE
10 SOUTH PL, LONDONbit.ly/AppstoreSummit2016