It is true that a mobile app can make you millions of dollars in revenue. However, if you look closely, you will see that the success rate of a mobile app in the digital ecosystem is not very high. With the eCommerce market booming at an alarming rate, app stores are getting flooded with new applications, but only a few of them really see any sort of success.
One of the main reasons behind it is that app marketers often fail to realize the value of users beyond the initial download of the app. The lifetime value or LTV is simply the measure of a user’s worth to a business from the moment they start using the product to the moment they churn.
It is an important metric that will reveal opportunities and weaknesses simultaneously. That is, if your LTV is not increasing over a specific period, it indicates that you need to relook your value proposition and focus on improving it.
So, let’s look at some of the strategies you can use to increase the LTV of your mobile app users.
An effective deep linking strategy will automatically increase the lifetime value of your users. Deep linking is the process of using a URL for directing the user to relevant content. You can use deep linking in numerous ways like notifications, emails, text messages, social media, search engines, etc. Imagine a scenario – if a user searches for your product on a mobile search engine and has your app installed on the phone, clicking a deep link will take that user to the specific product in the app.
Now a question will pop up in your mind - what will happen if the users have not installed the app before searching for the product? That’s where a deferred deep link comes into play. While the normal deep link takes users directly to the relevant content as long as they have downloaded the app, a deferred deep link takes them to an alternative destination. This destination is usually the app store from which the users can download the app. And once the app installation is complete, the users are redirected to their original destination or the product page.
One of the easiest ways to increase the lifetime value of your app users is by encouraging social sharing. Social platforms are efficient tools that deliver a virality effect and influence customer retention. When people enjoy doing something, they are likely to tell it to their friends, and customers prefer to listen to their peers’ recommendations than trust the marketing spiel. By enabling social sharing, you can ensure that your app engagement is at an all-time high, thereby contributing to the overall LTV.
The first step in this process is making social shares easy. Integrate sharing features into your app so that your customers can promote pages, content, and product. Airbnb does it incredibly well. If users decide to share Airbnb content with a friend or on social media, all they have to do is click the share button. It will generate a pop-up window with all the options like email, Twitter, WhatsApp, etc.
You should also try to incentivize social sharing by offering in-app bonuses, referral bonuses, points, and more. It will push more people to promote your content as they receive something in return.
Push notifications play an important role in boosting the lifetime value of your users. The right push notification strategy will encourage users to re-engage, spend significant time on your app, and ultimately convert. However, push notifications are like a double-edged sword; if you don’t get it right, you are left with an unsatisfied customer who got irked by constant, out-of-context communication from your app.
Therefore, while devising your push notification strategy, you must always focus on the user front. No one likes to be bombarded with generic notifications. So, conduct in-depth market research and testing to identify the user threshold when it comes to the recency of notifications. More importantly, tailor the messages in a highly personalized manner that entices the user.
TripAdvisor’s push notifications strategy is the best example to highlight the importance of being relevant to the user. It sends personalized messages to users based on their in-app engagement and includes an actionable CTA. This logical approach improves user experience, thereby positively impacting the overall LTV.
If you are an existing Vajro customer, here are some detailed guides on how to create and schedule push notifications for your app.
The user onboarding process could make or break retention, no matter how good your product is. It creates your product’s first impression and influences the user in deciding whether to continue using your product. In today’s digital world, customers have infinite purchase options, and a seamless onboarding process might just be the gamechanger for you in terms of retaining and re-engaging your customers. But it is easier said than done. You should conduct extensive market research and testing to unearth flaws in your onboarding process.
Make sure that you are giving the users what they need. Try not to overwhelm them with unwanted information during the onboarding stage. Follow a personalized approach, simplify the sign-up/log-in process, help the users who are facing difficulty logging in, or even provide tutorials on how to use the app.
Here are certain thumb rules that will help you optimize your onboarding process and ensure a seamless user experience:
LTV is one of the most overlooked metrics in business. But it is also the best indicator for success. So, it is vital that you have a clear picture of your customer’s lifetime value. Simply put, LTV has three main drivers – monetization, retention, and virality. That is, the amount of money each customer brings in, how long your users keep the app installed, and how many users refer your app to their friends.
Track and study these variables consistently, make tweaks in your business strategies accordingly, and above all, keep up with the changing customer behavior and preferences. Soon you will be able to maximize the LTV of your mobile app users easily.
Vajro is also here to help you. We have aided numerous clients with their digital transformation journey. Our instant mobile app factory will deliver your dream mobile app within a short span of time. Our app will help you focus on relationship building, thereby increasing the LTV of your customers while building customer loyalty. Click here to start your free trial.