There is much common ground between freemium apps and games businesses when it comes to achieving success.
Users are, however, more used to paying for games than apps, stemming from the history of traditional gaming consoles. Moreover, mobile games are also able to easily offer ‘virtual goods’ across a range of price points to suit every pocket. This means that game developers have had plenty of opportunity to learn about how to improve onboarding, conversion, and ultimately the user Lifetime Value (LTV).
So what can app developers learn from game developers? Here are some best practice tips and insights from successful game developers that can be applied to many apps, today.
1. Optimize retention before investing in acquisition
Retention is king, and retention drives conversion. For games developers, retention is the key measure of game quality and whether it appeals to players.
Most game developers will “soft launch” their apps to beta testing communities or test markets. During this phase, the game is tweaked to optimize retention by looking into specific areas, such as tutorial completion, level difficulty and conversion. Developers can then track retention using the Cohorts reports in Google Analytics. Once retention is satisfactory, the developer can go to full launch and start investing in user acquisition.
2. Retain users with step-by-step engagement
The first seven days after install are the most critical for retention: users install several apps to try them, and decide in the first few days which ones they want to keep using. If you can retain for that time span, your app is more likely to become part of the user’s daily routine.
There are some simple ways to progressively build user engagement. It’s important to present a strong story that explains why that app is relevant to the user, while introducing them to key features. Then place features that offer the user value early, so they can be found without much effort.
This is a not a one-size-fit-all. To find the right solution, a developer needs to first make assumptions on what user flows can improve retention and then run A/B tests to validate or correct them. For example, a developer could think that introducing sign-in later in the user flow might improve retention. Also, the developer needs to keep in mind what the key long term engagement metrics are for the individual app (such as photos uploaded or the number of articles read) and measure the impact of the different onboarding flows on those metrics as well.
In general, these principles are good places to start optimizing your onboarding:
- Look for ways to let the users experience the app straight away, rather than taking them through a long, complex setup.
- Present “activation moments” — such as registering an account, uploading a video, or finding friend — gradually
- Start by requiring minimal investment by the user, and then ask them for more details, as they are needed to use the apps features.
- Treat permissions as a service for the user. For example, if you want users to register, show them in advance that, by making their experience more personal, they’ll get more value from the app.
In this example, OkCupid tried different onboarding flows and found the most engaging version increased seven-day retention by over 20 percent.
Finally, ensure the user can understand the value of your app before you start asking them to pay. Game developers are particularly good at letting their users try most or all product features for free in in a set number of days or sessions.
A great tool to help analyze how users are engaging (or not) with the app is through the Flow Report in Google Analytics. Using this report, a developer can see how users navigate through the app and where they leave to identify potential roadblocks.
3. Target the right offers at the right users
Understanding different groups of users in-app purchase behavior is the key to devising strategies to encourage them to spend.
Start by identifying groups of users by how they spend and much they are likely to spend. It may be by age group, the channel that brought the install, or in-app behavior. Use the Segment builder in Google Analytics to identify and define these groups of users. Then, tailor in-app purchase offers to match the segments spending behavior. For example, for segments where multiple users tend to spend more in one go, but spend infrequently, offer them in-app features bundled together.
4. Offer in-app purchases when users are most likely to spend
Users are also more likely to spend, if the purchasing experience is frictionless, and even more so when they can see how the expenditure will add value. So:
- Present purchase opportunities to users when they’re most likely to need or want it — and explain to the user why it’s relevant.
- Make purchasing accessible easily from within the app with a minimum number of taps. For example, offer an upgrade button on the footer of relevant screens.
TomTom added a countdown to indicate when the free service runs out (counted in kilometers travelled). The counter includes a button to upgrade offering a one-tap in-app purchase.
Like all good game developers, focus on building good experiences that retain and engage users through constant testing and analytics. First impressions are important, so users need to be able to quickly understand the importance of the app and easily navigate through the onboarding experience. And to start generating revenue, it is important to be thoughtful about how to make in-app purchases actionable.