In case you didn’t know it, retargeting existing customers through retail apps can generate an increase in conversion by 70% – something worth considering with just 76 days until Christmas.
Sales research has long proven the value of focusing on existing customers versus prospecting new ones. Marketing Metrics Solutions research shows that the probability of selling to a new customer is 5-20% versus the 60-70% likelihood of selling to an existing customer while consulting firm Bain and Company said that it costs six times as much to win a new customer as it does to keep an existing one.
Now, data from mobile marketing platform YouAppi analysing shopping app retargeting and re-engagement from Q4 2018 shows that these retention marketing ads can generate a significant increase in app usage and sales.
App retargeting refers to targeting users who installed an app but didn’t proceed down the funnel to make a purchase while re-engagement is designed for formerly active users who have become dormant. Existing app users were targeted with the test group being shown native or static banner or video ads while the control group wasn’t shown any ad, with 80% of the users in the test group and 20% in the control group.
YouAppi’s Dynamic Audience Segmentation Engine segmented both the test and the control group users into granular cohorts based on purchase funnel position, visit recency and frequency. According to YouAppi’s app retargeting and re-engagement data analysis, the specific user groups targeted included recent installs with no purchases, users who abandoned products in their shopping cart and users who had previously made purchases. By using user acquisition post-install data, YouAppi’s technology was able to improve the efficacy of the company’s app retargeting and re-engagement efforts.
The test group users, who saw one of several app retargeting or re-engagement app ads served via programmatic bidding, converted 70% or more than the control group, resulting in an average order size which was twice as much.
Another interesting metric from YouAppi’s holiday retargeting and re-engagement ads was that holiday-focused creative generated a 30% greater conversion rate than the ads without holiday-focused creative.
“With most users in the US, Canada, Europe, and Asia already accessing the mobile web via smartphones, the critical marketing battle for all but new apps is to retain users,” explains Meiry Vaknin, VP Strategic Partnerships, YouAppi. “Based on three years of research into app retention marketing, we’re seeing app retargeting and re-engagement campaigns that bring never active and inactive users to active and continuous app usage and significant revenue growth for apps.”
YouAppi’s app retargeting and re-engagement solutions are perfectly suited for e-commerce apps, enabling marketers to retain users and optimize performance beyond the install according to marketer KPIs including ROI, CPA, Return On Ad Spend, Cost of First Purchase, etc. Proprietary machine learning algorithms and custom audience builder with real-time data processing and granular segmentation enable utilizing insights acquired from post-install event analysis in order to run more effective app retargeting and re-engagement campaigns.