Manage Your Conversion Funnels - Whiteboard Wednesday

Localytics VP of Marketing, Bernd Leger, discusses the differences between web and mobile app conversion funnels as well as how to leverage an analytics service to optimize your conversion rates.

 

Transcript

Hi, my name is Bernd Leger. I'm the Vice President of Marketing at Localytics.
Thank you for joining us for another Whiteboard Wednesday session today.
Our topic is app funnel management, so we want to offer some steps to take to optimize your conversions and manage your funnels directly within your apps.

 

Contrasting Web & Mobile Conversion Funnels

Let's start off by taking a look at the traditional view for how we ask marketers look at funnel management.
In a B2B environment, we would typically think about suspects, and the conversion to prospects, to leads, opportunities and then deals/customers. We would certainly track every step along the way to identify how well we're converting, what those conversion rates are, and what money we're spending at each stage.

In the app world, our conversion funnels look very differently. Taking for example an e-company who would most typically be interested in understanding how much it costs to bring people into the app, for people to launch the app, and ultimately going from a product view to people going to the cart, and then converting into paid customers.

In a news app, that may look completely different. For a news app, your conversion might be more about getting people into the app, having them look at an article, and then either becoming a subscribed customer, or sharing an article with a friend, because in the news world it's all about advertising dollars, so being able to see exactly what people are doing in the app might be helpful to drive those ad dollars.

 

Leveraging an App Analytics Solution

With that, there are certainly ways how the app world functions differently, because unlike your traditional marketing tools, within the app you don't have page views, you have certain events that take place. For you to understand your funnels, you'd have to start by defining your hypotheses of what people are going to do within the app. The way to do that ideally is by having an analytics solution that can help you track what people are actually doing within your app.

The beautiful thing here is once you've defined your events and your steps, your analytical solution can help you track how people are converting; you have very detailed information on what the conversion percentages are at each step. Why is that important and how can that help?

 

Optimizing User Segments & Ad Network Data

If you have that information, you can then focus on either optimizing your conversions...for example in the ecommerce scenario, you might change actual functionality within your app or you might show certain screens earlier rather than later to optimize this conversion, or you might change the way that your cart is built or shown to your customers to drive that quicker.

The other opportunity that an analytics solution will give you is very detailed user segmentation.
As an example, let's say you're spending ad dollars on Facebook, on other ad networks, you can then compare how well are my users converting based on where they came from. You could determine, for example, that your Facebook ads are much more valuable because your conversion rates are higher and ultimately leading to higher revenue at the end of the funnel.

 

Applying In-App Messaging to Drive Conversions

The other method that you can use to ultimately drive your conversion, might be to leverage in-app messaging.

What we mean by that is your ability to, based on those defined segments, send your messages out to certain sub-segments of your user base to drive this conversion. An example might be, for ecommerce, you might have certain people who are stuck at the cart level and haven't completed a purchase, so you could run an in-app message to everyone sitting at that stage with a special 10% promotion to ultimately drive them to that conversion.

So with that quick summary, key thing about app funnel management:
1) Ideally define your hypotheses; be very clear about what you think those steps are
2) Make sure you have an analytical solution that can help you understand if your hypotheses are true
3) Potentially look at leveraging in-app marketing solutions that can help you drive actual communication and very personalized interaction with your consumers.

With that, thank you again for joining us today, and we look forward to welcoming you very soon for another Whiteboard Wednesday. Thank you.

 

user seg webinar

 

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