In mobile marketing, CVR (Conversion Rate) is a metric that measures the percentage of people who take the desired action after viewing a mobile ad or landing page.
CVRs are important to track because they help explain how effective your mobile marketing campaigns are at driving results. If your CVRs are low, it may be an indication that your campaigns are not well-targeted, or that your landing pages are not optimized for mobile and perhaps because your ad creatives are communicating a different experience.
Read on to learn the role CVR plays in mobile user acquisition, and how you can bolster your own app’s CVR in the process.
What is the CVR Formula?
CVR can be calculated by dividing the total number of users that completed a certain event relating to the advertised app, divided by the number of users that clicked on the app’s ad, multiplied by 100. CVR does not necessarily pertain to click-level data and can also take install to purchase into account. The CVR formula can be split in these 2 common ways:
Click-to-Install CVR: [(Total Installs / Total Clicks) x 100)
Install-to-Purchase CVR: [(Total Purchases / Total Installs) x 100]
For instance, if your mobile ad is clicked on 10,000 times and brings in 500 installs of which 200 users make a purchase, your click-to-install CVR will be 5% and the install-to-purchase CVR will be 40%.
Why is Knowing your CVR important?
As an app owner, if you are not tracking your app’s CVR, you are missing out on valuable data that could help you improve your app and boost your bottom line.
Your CVR is a key metric that tells you how well your app is performing in terms of converting users into paying customers. A high CVR is a good sign that your app is appealing to users and is able to generate revenue, and that the ad inventory you have chosen is optimal.
If you do not keep an eye on your CVR, there is a good chance that you might be overspending and burning your ad budget on traffic that is not bringing in quality users.
Hence, tracking your CVR and making improvements where necessary is a key part of ensuring your app is successful.
Different Methods to Monitor & Track CVR
As the mobile marketing landscape continues to evolve, so do the ways in which marketers can calculate, monitor and track their ads’ CVRs to improve their user acquisition strategies. Here are a few of the most popular methods:
Google Analytics is a free tool that can be used to track mobile traffic and conversions. To set it up, simply create a Google Analytics account and add the tracking code to your app. Once it’s up and running, you can view how many users visit your app (segmented by separate media channels and demographics); also, you can check how many of those visitors convert into customers or leads.
Mobile Marketing Platforms
If you are using a mobile marketing platform, such as AppSamurai, you will have access to the platform’s built-in conversion tracking. This can be a quick and easy way to see how effective your specific mobile campaigns are at driving conversions. Most of these platforms display CVR on the main ‘Reporting’ page of their dashboards, allowing for easier CVR optimization.
Third-Party Tracking Tools
There are a number of third-party tracking tools available that can be used to track mobile conversions. These tools can be used in conjunction with Google Analytics or on their own. Some popular options include Adjust and Appsflyer; AppSamurai has an in-built tracking tool for app owners that do not work with a third-party tracker.
Reaching out to Your Customers
If you are looking for a more direct way to track mobile conversions, you can always ask your customers how they found out about your business. This can be done via a survey or poll. While it’s not the most scientific method, it can give you some valuable insights into which of your marketing channels are most effective at driving conversions. This is a time-intensive process and should only be used as a last resort if normal CRM tools do not prevail.
Keeping an Eye on Sales
If you have a physical product or service, you can track mobile conversions by keeping an eye on sales. This is especially effective if you have a unique product or offer that can be traced back to a specific marketing campaign.
No matter which method you choose, tracking mobile conversions is essential to understanding how effective your mobile marketing efforts are. By tracking conversions, you can make changes and adjustments to your CVR strategies to ensure that you are getting the most bang for your buck.
Best Practices to Increase your Campaign’s CVR
If you’re looking to increase your app’s conversion rate, there are a few things you can do to improve your chances. Here are a few well-known best practices in the industry:
Make sure your app is well-designed and user-friendly.
If users can’t figure out how to use your app, they’re not going to bother trying to convert, let alone commit to signing up or purchasing within your app. A well-designed app will have a smooth user experience that is clearly defined, allowing users to traverse the app with more ease and better understanding. This will lead to a higher CVR further down the user journey.
Use effective marketing techniques to reach your target audience.
If potential users don’t know your app exists, they’re not going to download it, even if they see your ad. Making sure you use the right media channels to access your target market is of vital importance. Mobile marketing platforms like AppSamurai have access to vast inventories across multiple media channels and ad sources which can help you tap into your desired audiences.
Use persuasive techniques to encourage users to convert.
In tandem with the previous point, in addition to addressing the audience, it is also important for your ad to make it easy for users to see the value of your app and why they should use it. The way to do this is to ensure that your ad creatives are well-optimized and contain the necessary imagery and information that will aid in converting your users, such as discount communications or app experience imagery.
Use data to track your progress and optimize your approach.
Using the methods mentioned in the previous section, you can keep track of your CVR over time and adjust your tactics accordingly. It is important to maintain benchmarks of your ads’ performances, running A/B testing to determine top campaigns based on their CVR optimization levels.
By following these tips, you can improve your app’s conversion rate and start seeing better results.
CVR happens to be one of the most important metrics in mobile marketing, and it is capable of telling a story of your app campaigns’ performances. While keeping CVR goals is an amicable takeaway from this blogpost, it is equally important to ensure you are working with the right partner to help you achieve them.