Mobile apps are a great way to increase revenue if you understand the concept of app conversions. An app conversion goal can help your company achieve the unimaginable.
In particular, mobile app conversions can help your company engage users and, most importantly, increase your bottom line. It is the perfect virtuous circle. More users mean more conversions, and more conversions mean more engagement, which in turn generates more conversions.
In this post, we discuss what app conversions are, how to increase your conversions, and how they can help you increase revenue.
App Conversions Explained
App conversions are an important part of any business strategy that involves a mobile app. If optimized correctly, it can help your company increase revenue. If done incorrectly, it may limit your ability to grow.
In short, the term app conversion refers to specific actions performed by your app’s users. The conversion is specified according to your company’s desired goals. As a result, there is no unique way to measure when a conversion occurs. However, a generally accepted best practice is to establish a conversion rate.
The Conversion Rate
When it comes to a mobile app, establishing a well-defined conversion rate is a useful way to achieve your goals. A mobile app conversion rate is usually defined in terms of the number of users that perform a given action, divided by the total number of users your app has.
Because not all apps are the same, the concept of app conversions may vary depending on specific goals. Whether you want to increase the number of users, app installs, app purchases, or the revenue perceived by Google ads campaigns, having a clear mobile app conversion rate is a must. Additionally, you must also establish a way to track it. Generally speaking, app conversions are almost always focused on increasing revenue, whether directly or indirectly.
Consider the following example. Your company has established app purchases as a specific app conversion metric. You offer your app under a freemium model, so not all downloads count as a purchase, only the ones who actually pay, or in other words, convert. As part of your app development project’s business intelligence analytics, you are able to easily track this. You observe that the number of app purchases is 10, and the total number of users is 100. Based on this information, you can conclude that the conversion rate for your app is 10%.
If you were to increase the first number, your revenue would increase. So, in the long term, you want your conversion rate to go up, as this will allow you to grow.
The Difference Between User Acquisitions, Retentions, and Conversions
User acquisition and retention are key processes that any successful mobile app should consider. However, these are of no use if your app cannot convert users.
Successful apps are the ones that are able to achieve these three different goals:
- Ideally, apps should first acquire users. To do this, a user acquisition strategy is recommended. This will help you attract and increase your app’s users.
- Subsequently, you want your mobile app to retain users. Retention means keeping them coming back to your app. That is, you want to maintain the number of active users during a period of time.
- Lastly, you want active users to convert, whatever that means for your business.
If you are able to achieve these three things, you can say that your app is successfully engaging your audience. To achieve these three aspects of your mobile app, the easiest path is to deliver a powerful User Experience.
An engaging User Experience can help your mobile app stand out from the crowd, attracting users, making their journey easy and full of value. It is recommended that you pair up with an expert app development partner that can help you throughout the development process to build a product that users find relevant.
How to Track App Conversions
If you can’t track app conversions, you might lose the opportunity to increase your revenue. Keeping track of key conversion metrics is important if you want your mobile app to succeed.
There are many ways to track mobile app conversions. You should first identify what your desired conversion is, and once you have this sorted out, you can consider different ways to track it. Depending on the tech stack your mobile app uses, you may want to use different alternatives.
For some specific cases, keeping track of your conversions will be easier. This is the case of app installs, as this information may be available to you directly from the Apple App Store or the Google Play Store, depending on the OS of your mobile app.
Whatever the conversion you are measuring, make sure that your data is correctly stored and processed. Make sure to perform the right Quality Assurance tests to ensure that there are no bugs in this process.
Increase Revenue Through App Conversions
The point of achieving your mobile app conversion goals is no other than to increase your revenue. In other words, you want to be able to monetize your app. Ultimately, this sounds like a simplistic view of what this entire process is about, but it summarizes it well.
Remember that you are building a mobile app, and in order for it to grow, you need to guarantee the necessary resources to keep it functional and attractive. Make sure to identify what the right conversion metrics are for your app and focus on achieving these goals. Before you know it, you will be on the road to success.