Learning how your app stacks up against others is critical to letting you see how you stack up against the competition and whether or not you need to take aggressive steps to improve your stats. The conversion rate is the percentage of visitors to a website, app or service. e-commerce that carry out actions that make them, in the short or medium term, customers of the store.
For those who work with online sales, finding ways to increase this rate is essential for business growth, in addition to showing which marketing strategies work or not.
But what is a good conversion rate anyway? They vary depending on what is being measured, according to Guilherme Kapos, Latin America sales director for online marketing platform Adjust.
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Everything from the category of your app to the conversion event you choose to measure can impact what counts as a good conversion rate. But learning how your application performs in your vertical is critical to knowing how to compare yourself to your competition and whether or not you need to take aggressive measures to improve your stats.
Conversion can be measured by any action you want to track, such as an installation, purchase, or event attendance in the store’s app. For example, if you have a mobile game, you may only be interested in boosting the game’s installs. To a website of e-commerce, it is preferable to follow the first purchases of customers. In a social network, the first post would be the key factor.
The conversion rate is the percentage of people who complete the desired action divided by the number of people exposed to the campaign. For example, if it reaches 10,000 customers and 500 of them install the mobile app, 500/10000 = 0.05, or a 5% conversion rate.
AppTweak last year analyzed the average conversion rate in the US to be 33.7% on the App Store and 26.4% on the Google Play Store. But when comparing your rate with that of the competition, you need to be careful with the proper contexts. After all, they vary not just by industry, region and action being tracked, but also by campaign. “For example, an image ad campaign designed to reach new users will likely have a lower conversion rate than an email campaign designed to engage existing users,” explains Kapos.
The executive indicates the adoption of tools for benchmarking to get specific answers about whether or not your app has a good conversion rate and what actions can be measured. Other than that, he lists five universal tips, listed below.
Whether you want to convince your audience to download the app or buy something, invest in custom ads to better target different audiences and each customer’s individual needs. Kapos suggests using Dynamic Product Ads (DPAs) on platforms like Facebook, Google or Hootsuite to better target your marketing.
surround yourself with metrics
Is the conversion lower than expected? Measure and analyze everything: app installs, purchases, customer records, browsing time, etc. Ask your mobile measurement partner (MMP) for help in spotting potential issues in your conversion funnel.
As a result of the previous tip, you may have noticed where conversion is falling short on the customer journey. Now is the time to run tests to find out what works. Find your hypothesis about the problem and address it at critical points using A/B testing, that is, using an alternative to see if the audience prefers it over the previous model. But beware: if the test doesn’t return the expected results, you’ll need to come up with new hypotheses and broaden your “investigation” into conversion rate failures.
master the integration
Integration is a process of uniting the various software and information that make the e-commerce work right. It’s critical, but sometimes the customer, in practice, encounters issues that could have been avoided in a careful integration, such as a technical issue after installing the app. So check and recheck everything as if you were the customer.
win back your audience
Even if that customer has already installed the app and even purchased it once or twice, you can lose it altogether without good engagement and retention. According to Kapos, employing reengagement messages can help bring consumers back to abandoned shopping carts, or complete a registration process they’ve forgotten. Use push notifications, emails or redirected ads to prompt customers to finish what they started and return to the app to complete the conversion.