Calculating The ROI On Mobile Marketing
For those of us within the industry, whether working within large B2C organizations or coming at things from the vendor perspective (and I’ve done both), it seems obvious why the average CMO needs to care about mobile marketing.
More specifically, in a world in which simply having some form of mobile platform is no longer enough, it also seems clear why managing the mobile user lifecycle matters. A huge amount of money is spent on both acquisition and development. Poor retention numbers kill the ROI on those spends. And poor mobile marketing campaigns, whether push or in-app, kill those retention numbers.
So as noted above: it’s obvious!
But let’s pause for a moment and consider the world of the CMO. Mobile is only part of her world. She may (in fact, surely will) spend a significant amount of time considering the overall state of the brand. Then add in acquisition, across a range of channels, which hasn’t gone anywhere. In some organizations, our CMO may also be required to manage a large amount of creative work and, of course, all forms of communication in mobile and elsewhere.
And of course any other senior role (because responsibility for the mobile lifecycle may lie elsewhere) - has a different but similarly large array of responsibilities.
At the C-level, the question isn’t whether a certain activity is worth doing. That would be far too easy. It is rather: “is it worth investing limited time and budget into this specific activity, over other alternatives”. That’s the heart of the job, and that’s where some form of ROI analysis comes in. Put simply, CMOs want to answer that questions with some numbers, rather than gut feel.
The ROI On Mobile Marketing
So what can a CMO expect to see on an investment in this area? Well, firstly it is of course important to have a clear understanding of the relative importance of your mobile app, and revenues delivered via the mobile app, to the business as a whole. That can’t be quantified, and is different for every business.
But once you have a handle on that number, we can help. Our latest whitepaper takes a look at a number of real-world case studies, and in each case quantifies the uplift against key metrics that you can expect to see when implementing an integrated mobile user lifecycle strategy.
We look at retention, conversion and, of course, revenue. The last is what really matters after all. And the results are impressive, based on both these examples and the other hundreds of customers we’ve worked with around the globe, we believe a well-constructed mobile lifecycle strategy can increase mobile revenues by something in the range of 15% to 35%. That’s significant - and it’s a number that helps C-level execs make the call between competing claims on their time and budget.
To read the whitepaper, just click here. Enjoy!