Highlights of the OpenBack Metrics & Measurement Webinar
In light of the release of the recent launch of our new comprehensive metrics, the team at OpenBack held our second live webinar: Using Metrics & Measurement to Maximize Your Return on Push. In it, team members Ben Davern and Dylan Grace explain the value of metrics analysis for optimizing your push notification, for higher click-through rates (CTR) and ultimately greater revenues.
You can watch the webinar for yourself here. But keep reading for our summary of the highlights…
Enormous Potential for Return on Push
The webinar opened exploring the idea of Return on Push Notifications:
Return on email is widely accepted to be $44 per every $1 invested in email marketing. According to a study by Digital Commerce 360, 72% of companies surveyed said that they were seeing greater than or equal returns from their push notifications as they were for email. And yet, no one is talking about an equivalent number for return on push. Why?
“Unlike email blasts or viewing banner ads, PNs are individual, personalized pieces of real-time micro-content. And mobile marketers can choose the time and place.”
Essentially, push notifications are a next-gen marketing tool, with a rich vein of potential to tap into. However, most mobile marketers aren’t using their full capabilities, whether because the platforms they use don’t offer features like metrics tracking, personalization, and real-time delivery or because they aren’t aware of them. The full potential of push technology is unlocked only when notifications are treated like an extension of the user interface, but thus far only a minority of mobile apps are doing that.
When surveying our own clients, we found that they were seeing x2 increases in click-through rate at a minimum, when they factored in the optimized deliverability of using our mobile edge computing platform and when they send their notifications at the perfect moment.
Moreover, it’s crucial for marketing teams to keep in mind that goal conversion doesn’t need to result in immediate revenue to have value. Pocket Gamer performed a study in which they discovered that daily average revenue per paying app user is $6. On the other hand, Whales are spending $60-70 per day.
So even if a push notification doesn’t result in an in-app purchase, it might still drive a user to invite friends to download your app, or leave a 5-star review on the App Store. That will build your community and could pave the way for higher-paying customers down the line.
User Journey Framework
Push notifications are versatile, and can be applied in different ways across different stages of the user lifecycle: Onboard, Engage, and Grow.
During the onboarding stage, you can send a notification with a deep link to an onboarding tutorial. You can remind them to complete their profile, or you can drive them to complete an early in-app purchase. (Studies show that the earlier a customer makes a purchase, the more likely they will purchase from your app on a regular basis.)
In the engagement stage, use push notifications to drive your conversion funnel, suggest repeat purchases to the user with personalized recommendations, and build habitual usage of your app by sending a push notification at the same time each day.
Finally, during the growth stage, you can use your in-depth knowledge of your user to build highly targeted segmented campaigns. Grow your app ecosystem by advising users to download partner apps, or leave a starred review on the App Store.
Metrics & Attribution
As he explored the different metrics and measurement tools OpenBack provides, team member Dylan Grace suggested looking at push notifications as a funnel for delivering business outcomes. He explained:
“Metrics serve as a way of measuring what a campaign is actually accomplishing and forecasting that on future actions. Whether it helps count leads in a pipeline or monthly active users, monthly sessions, whatever it may be, these are crucial signals of the health and staying power of your app. By tracking past results, you can actually map out a game plan for the future, and decide how you’re going to change and iterate and improve on what you’re doing at the moment.”
Tracking various metrics across different push campaigns will show you the progress you’ve made over the past 30 days. Analyze metrics in combination for even more insights. Essentially, it gives you an idea of your app health on a rolling basis.
Audience and active devices show you who’s opting-in to receive your push notifications, and who’s keeping your app installed long-term. (While number os installs may be a tempting metric to track, remember that mobile apps have high churn rates: 90% by day 30, and even worse for mobile games.)
Tracking goal completions (e.g. purchase conversion, level of game being played) helps you track what users are doing in-app. Are they bringing in revenue or value in some other way? How much are they costing you to retain? If a push notification is impacting goal conversions in a statistically significant way, it’s important to track that so you can see what you’re doing right, and then iterate in future campaigns.
Familiarize Yourself With Metrics That Matter
Not all metrics matter for all mobile apps. It’s crucial to decide which KPIs to focus on, so you’re not wasting your time tracking the wrong things. As a good rule of thumb, you should be tracking your active users and retention cohorts. This helps you measure growth, churn, and stickiness, and what you’re doing right and wrong in your campaigns.
Tracking your Monthly and Daily Active Users (MAU/DAU) will give you insights on your app’s stickiness. Are users coming back to your app consistently? To put it in context, the standard app has a stickiness of 10-20%, while high-performing apps like Facebook or Twitter are around 50%. WhatsApp’s MAU/DAU ratio is 70%, which demonstrates that most of its monthly users are also using it on a day-to-day basis.
Percentage retention cohorts then show you what percentage of users are opening your app X day after install. This helps you figure out what aspect of your app is causing a drop in users after a certain day. This helps you assess what you need to improve to retain users. Remember, it’s always easier and cheaper to retain user than acquire new users. Your rolling retention rates then measure the percentage of users who continue to open your app X days after install.
Key message metrics include actual notifications delivered on-device, click rate, and conversion metrics (i.e. this goal conversion came about because we sent X notification.) You can find all of these metrics and measurements tools on the OpenBack dashboard – sign up for a free demo to explore its capabilities here.
Levers Framework and Metrics-Driven Outcomes
There are multiple levers you can pull to optimize your click-through rate, but it all boils down to: Content + Segmentation + Moment of Delivery, or Who, What, and When. Personalizing content is a must. Your notifications should be tailored to a user’s preferences, from making sure it’s relevant to their interests to addressing them by name to sending it at the most convenient moment for you to click on them.
Pre-permission notifications are also crucial for iOS users, as it can be a friendlier, soft-sell approach to explaining the value of notifications to their users, with more of a likelihood that they’ll opt in. And delivering push notifications in true real-time – a capability on OpenBack offers currently – has been shown to double CTR among our clients, leading to greater customer lifetime value and higher return on push.
Ultimately, push notifications are uncharted territory. Mobile marketers are only using a small fraction of their capabilities, which means these are very exciting times for the mobile app industry. OpenBack is currently leading the drive to normalize tracking metrics in push notifications, and with it the potential for an enormous new revenue stream. As team member Ben Davern summed up:
“All metrics should be tracking & streamlining your app’s journey to greater return on push. Take full advantage of extensive capabilities of next-gen push technology”
To learn more about how to use metrics and measurement tracking to increase your return on push, visit the OpenBack website and create a demo account. Or, reach out to a team member for a consultation.
You can also download our complete Metrics & Whitepaper Playbook here: