The businesses of today and the future require the ability to provide consumers with as seamless an experience as possible when they interact with the brand across multiple touchpoints. Yet it is not enough for businesses to leverage the many channels marketers have at their disposal. The ability to measure the effectiveness of omni-channel activities and the ability to act upon the insights gained represents the Holy Grail for marketers. Some brands are already increasingly seeking to quantify and qualify their activities across desktops, laptops, smartphones, tablets and more recently, even wearables like smartwatches. Yet many marketers are still not adept at measuring even a single channel, much less multiple channels. Consider this: 85% of CMOs fail to measure omni-channel strategies and only 40% of marketers measure mobile app revenue, when in fact the lifetime value of customers (LTV) is higher for shoppers who shop both online and in-store.
Let’s first consider best practices and principles culled from experience in cross-channel measurement. First, before diving into an omni-channel strategy, a marketer should become an expert in one channel. Second, they must learn how to use an advanced attribution platform capable of tracking consumer behaviour across channels. This is the first step in anticipating where consumers are coming from and what they need at that moment. Third, knowing how each channel complements the other. It is crucial for providing a seamless experience for consumers. Fourth, work on personalising a consumer’s journey. Up to 85% of shoppers respond positively to personalised promotions and coupon offers. Optimising each stop in a consumer’s journey allows for a personalised experience that will help push them through the funnel and the sale.
These learnings allow marketers to appeal to a new breed of omni-channel consumers who increasingly want complete information and access at their fingertips — including features, pricing, discounts, reviews, payment methods and other product data.
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Let’s back up for a minute and explore how to ‘become a master of one’ as mentioned earlier. Lifetime value measurement is centred on two key components: the amount of incoming revenue an average user generates and the cost of acquiring an average user.
When it comes to the first part, focus on measuring your total revenue broken down by source. To get things started, define and measure revenue events with your mobile attribution partner. Let’s break it down:
1) Standard in-app purchase event: It goes without saying that of the many in-app actions you should measure, a purchase event is a must as it is the largest source of revenue for most apps.
2) Rich purchase event: For proper revenue optimisation, it is highly recommended to have an in-depth knowledge as every cent counts. This is done by adding multiple parameters to the purchase event so you will not only know that a purchase event took place but also with great detail, by whom, when and for how much.
3) Custom revenue events for paid apps and subscriptions: The key thing here is that when one knows more about money that’s expected to come in, spending on marketing becomes much easier. De-duping activations from different devices that go through the same account is also important because charges are mostly done on the account level, not the device level.
4) Out-of-app revenue events: LTV calculations will be significantly impacted by purchases performed at other touchpoints like the website, mobile website and even a brick-and-mortar location. As such, if a user that was acquired by the app from a specific source goes on to make purchases outside the app, that user’s LTV and the LTV of the acquiring source obviously change, and with it, your performance data. That’s why connecting any out-of-app revenue event to your app marketing data is an important part of measuring LTV.
5) Revenue postback: Allow your measurement partner to pass on revenue data to your media and service partners. This will enable them to take advantage of the data for better optimisation and targeting campaigns. Connecting the dots
Clearly, it is crucial for app marketers to analyse ad spends with returns and optimise for the channel or channels they are leveraging. Mobile activities need to be measured through any of the above mentioned ways. These methods gain significance when one can connect the dots through multiple touchpoints and measure the impact of their cross-channel promotions. The early adopters of mobile measurement understand benefits and acknowledge that it is the best measurable ecosystem ever created. With multiple identifiers, any app marketer can accurately measure their campaigns from start (impressions) to finish (RoI).
The author is Ronen Mense, VP, Asia, AppsFlyer