A small percentage of a business’s app users generate the majority of the app’s sales and use, according to the new study, “State of Mobile Acquisition,” by digital advertising company RadiumOne Inc.
RadiumOne analyzed data from apps in January 2016 across more than 100,000 iPhones, iPads and Android mobile devices.
For retail apps, 18% of consumers who have downloaded the retailer’s app are high-value users, meaning they have made an in-app purchase in the last 30 days or have used the app at least 30 times in the last 30 days. And that 18% of shoppers generates 78% of the app’s revenue, according to the study.
Retail’s percentage of high-value app users is on par with music/book apps (18%) and communication apps (16%). However, high-value users in these app categories generate more revenue for the app than retailers’ high-value app users. The 18% of high-value music/book app users generate 99% of app revenue, and the 16% of the high-value communication app users generate 85% of app revenue, according to the study. Sports apps have the largest percentage of high-value app users at 28%, which generate 90% of app revenue, according to the study.
Marketers should work to cater to those high-value retail app users to get them to contribute even more to the app’s revenue, according to the report. Also, retail mobile marketers should look for ways to convert average users into high-value users via smartphone alerts, retargeting campaigns and rewards, according to the report.
In fact, 28% of retail app users demonstrate mobile behavior that signals they could be high-value users, based on other apps on the consumer’s smartphone, websites the shopper visits and ads that shopper clicks on, according to the report. The report suggests targeting potential high-value users with in-app ads and mobile web ads.
In terms of app sessions, the average retail app user will open the app 10 times per month, compared to 35 times for the high-value user. The average music/book app user will open the app 12 times per month, compared to 32 times for the high-value user. High-value users in sports and communication apps, however, generate more sessions than the retail and music/book app categories. For sports apps, high-value users opened the app 67 times a month, compared to 16 times for the average user. For communication apps, high-value users open the app 109 times a month, compared to 20 times for the average user.
Additionally, high-value retail app users are loyal to a small number retailers, according to the report.
The average retail app user has three shopping apps on her device, while a high-value retail app user has two shopping apps on her device.
The report also looked at what high-value retail app users do on their phones. 27.1% of high-value retail app users have a lifestyle app on their mobile device, compared to 18.7% of average app users. Lifestyle apps include dating, weather, emojis, fitness tracking, public transit tickets, maps and astrology. Also, 7.6% of high-value retail app users have a social gaming app on their device compared to 19.9% of average app users.
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