In the early days of the mobile apps phenomenon, the number one goal for most app marketers was to acquire as many users as possible. The more users they can get, the higher their apps rose in rank in the Apple iOS or Google Play app store’s’ charts. In turn, the visibility that the top chart apps get leads to a significant organic lift of installs. However, as the mobile industry continues to mature - many app marketers’ focus have also shifted. From focusing on just the quantity of users, app marketers are also focusing on the quality of those users as well. If you are an app marketer and have not already shifted your strategy to target quality users, now is the time to do so.
Why Should You Care About The Quality of Users?
For apps that operate under a freemium model, the return on investment (ROI) is dependent on the quality of users who have installed the apps. Will they be making in-app purchases or sticking around long enough to watch in-app ads? If not, then they are not high-quality users who will drive your app’s ROI.
To further explain the correlation between quality of user and ROI, let’s look at an example. Suppose you have a game app that generates revenue when users purchase premium items to help advance them into the game. In a recent app marketing campaign, you have just acquired 100 new users at a $3 cost per install (CPI). However, out of the 100 new users, only 30 of them are high quality users.
If each of the 30 high quality users spent at least $3 purchasing premium items in your game, you’ve made back the money you’ve spent on acquiring those 30. On the other hand, the other 70 users did not make any in-app purchases so you’ve actually spent $210 acquiring them but got nothing in return. As you can see, although the quantity of high quality users was less than half of the non-quality users, they can actually drive stronger ROI.