Great strategy as a key to customer acquisition – User Acquisition in mobile application

The app store statistics clearly shows that 4/5 users of the Play Store and App Store did not check the results below the 25 first suggestions during the search. Every third user of the app store gets the first of the possible search result, every sixth the second and every tenth the third. This shows that choosing the right methods for acquiring users is very important. It will provide us with visibility and exposure of our application and will allow us to achieve business goals.

Customer acquisition is a fundamental issue that accompanies the marketing of a mobile application. This concept is associated with generating a large number of leads, but not completely.

User acquisition is a series of activities aimed to focusing the attention of potential new users of the application, turning them into its regular customers.

Customer Acquisition Cost (CAC)

It is calculated by dividing all costs spent on acquiring the customer by the number of new users. This is the price needed to convince users to download the application. Your goal as the owner of the application should be to keep this indicator as low as possible.

In order to use CAC’s to measure the success of UA strategies, you should be aware that you must not rely solely on acquiring new users, but also on the value added by them to the application.

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Lifetime Value (LTV)

LTV is the average value of revenue earned per user of the application in a given period of time expressed in the currency in which the sale is made.

User evaluation based on LTV is a step ahead. We must, however, bear in mind that if we set goals only on the basis of the number of users without considering their quality, we must expect their future outflow, because the user is not the same as the convinced user.

Methods of customer acquisition

There are two ways to acquire customers – paid and organic. When determining the Customer Acquisition Cost, you should determine the costs incurred for marketing.

These costs may include:

  1. advertising in social media
  2. advertising in the application
  3. video advertising
  4. e-mail marketing

Basicly, the more channels we choose, the faster and easier we can reach new users, but the most important is to choose right UA channels. Choosing the right User Acquisition strategy should be well thought out, especially when it comes to UA paid sources. Incorrect selection of paid channels can expose us to high costs and not bring the right results.

The second method is organic UA. This is to ensure that the mobile application is at the forefront of search rankings in both app stores and Google search. Organic methods include:

  1. App Store Optimization (ASO) to increase positioning and visibility in App Store and Google Play Store – ASO is currently one of the most important elements of UA giving visible results.
  2. Increasing internet traffic on the website of the application via SEO
  3. Building a presence in social media related to constant engagement and interaction with users

Regardless of the chosen method, we must be aware that the acquisition of users is a long-term process. In the case of paid campaigns, we can speed things up a bit, organic methods of acquiring users take time, paying back long-term results. What we need to remember when planning the User Acquisition strategy is to skillfully use both of these methods. A well-prepared strategy should complement each other.

What makes a mobile application successful?

Below you can see a few metrics that in the context of creating an application, and thus receiving it by users contribute to its success:

Retention – how long users want to use the application and stay with it.

Social media – channels with which you can reach a wider audience, showing you through activity how close you are to them. They improve and increase the chance of acquiring new application clients.

Reviews – let’s face it – the ratings and opinions of the application users are very important in terms of increasing the chance of using the application among new customers. If you take care of the quality of your application, you will generate positive feedback from users, thus increasing the indexes and positions in the rankings.

Monetization – a goal that allows you to determine how applications earn. This concept goes hand in hand with the continuous development of the mobile application.

User acquisition – Methods of getting users and make them loyal users of your application

Since we are talking about development, we should consider what challenges brings creation of a mobile application.

Big competition

The competition on Google Play search engines, the App Store, is huge. For almost every newly introduced mobile application there are a number of alternatives. Most of these applications may not be worth attention, but the problem appears in the context of their positioning.

Large selection

An extensive number of categories of mobile applications means that even the shortest negative opinion or review will make your potential customers try the pre-existing application.

User preferences

On the one hand, it may seem strange, but even the smallest detail in the case of functionality may translate into a change in the mobile application by the user. In this regard, we are dealing with a “race” consisting of dynamic changes in the application functions. We want to say that what was most modern a few months ago may be out of date until the mobile application is launched.

Technology development

Rather, fast improvement of technology is another challenge for the mobile application. When we considering put our mobile app to the app stories online, we should also consider run of this application on smartwatches and tablets. Rapidly changing technology means that mobile developers do not have time to sell applications they have already developed or completed.

In the next blog post you will find best tips how to deal with soft launch campaign.