Mobile App Burst
We live in a world populated by apps. And in this world, apps wage a war with other apps for visibility, attention, top ranks and generally speaking, survival in the Appstore and Google Play Store. The reason for this fierce competition is the enormous revenue that mobile apps have generated in the past and their continuous growth.
“Global mobile app revenues were almost $70 billion (USD) and a projection shows that this figure will grow to $189 billion (USD) by 2020.”
Put the data to work
Some B2B and most B2C companies lean on their apps not only for revenue but also customer engagement and productivity. With 2.8 million apps in the Google Play Store, the scope for competition is huge. And these millions of apps are generating massive amounts of data every day (video apps in 2016 alone generated no less than 4375 petabytes monthly).
“Video apps in 2016 alone generate no less than 4375 petabytes monthly”
The sensible thing to do would be to put this large amount of data to use. App analytics gathers this data and uses key metrics to filter noise and derive insights so that important business decisions can be made based on these insights from meaningful data.
Do you have right metrics?
Mobile app developers take great efforts to ensure that their app has great visibility, performance, engagement, and retention. But without the right metrics, you would just be beating around the bush.
We are long past the point where the number of app downloads and user reviews on the app stores was an accurate and viable metric for an app’s performance.
Today it makes more sense to measure data like time spent on the app, user experience and engagement, performance and user retention.
For example, here are some of the well-known industry tech giants who harnessed mobile app analytics and reaped the benefits.
“Uber has always been rooted in data analytics.”
The mobile app of the taxi aggregator measures specific metrics like traffic, the length of the trip, location, surge pricing and driver/customer ratings.
These specific and detailed metrics gave Uber its advantage over other smaller and private taxi services. Uber owes its exponential growth and global expansion to data analytics.
“Knowing what specific and unique metrics to focus on was a huge advantage to Uber to grow their business.”
Tinder, the dating app, used data analytics to observe the behavior data of their users. They observed that some users always swiped right to all the profiles.
“On running a behavior data analytics of these frequent ‘right-swipers’, they were able to find a way out of this problem.”
Behavior data analytics pointed at restricting the allowable swipes. Tinder valued this insight and took action on their app. Tinder introduced a restriction on the number of right swipes by one person. And voila! Users learned to limit their swipes and consequently learned the value of each right swipe action.
By limiting the number of right swipes, Tinder was able to educate their audience and give them a more meaningful user experience on the app. A small action goes a long way.
“Airbnb increased their conversion rate by 5x”
When they employed analytics to optimize first-time listing flow. Initially, Airbnb wanted to increase their revenue by optimizing the process flow for a booking.
But, on further inquiry, Airbnb also measured the user engagement events within the app like where the user spent most time inside the app, their most frequent actions and the percentage of people who made a booking.
Funnel analytics and event tracking combined to give amazing results. Airbnb saw a 400% increase in conversion rate! Even though Airbnb only wanted to look at the conversion funnel, in the beginning, it ended up optimizing the app experience for their users.
If there is anything to learn from pioneering companies like Uber and Airbnb it is this: take app analytics seriously and focus more on giving your user the best experience.
It is 2017. It is a time we dropped the notion that the number of downloads correlates to the app’s performance. Metrics like user acquisition, behavior, engagement, and retention are better indicators of your app’s health and success.