Anyone with marketing experience has probably heard of the conversion rate. But do you really have a good understanding of what it is, why it’s important, and what the average conversion rate for apps is? Keep reading to get all of these important questions answered.
What is the conversion rate?
Mobile app conversions are often associated with downloads but the point of conversion isn’t limited to this single action. There are many different actions that could be considered conversions.
Here are some examples:
- In-app purchase;
- Reading an article;
- Playing a game;
- Installing an app;
- Subscribing to updates.
What you choose to focus on depends on your app and your current goals. For example, a possible conversion for travel apps might be booking a flight or checking in at a hotel. Game app developers might encourage users to spend a certain length of time playing their games and would consider it a conversion when that amount of time is reached.
So you can see that conversions are more than just purchases or app downloads.
Why is the conversion rate important?
Although it takes extra time and effort to increase conversion rates, the benefits are worth it.
Here are some of those benefits:
- Improves Return on Investment (ROI) – A great marketing strategy results in more conversions, which give you better results.
- Analyzes Marketing Performance – Your app’s conversion rate will tell you if your marketing strategy is achieving your goals.
A poor rate lets you know it’s time to change something, while a good rate assures you of being on the right track.
If you do need to tweak your marketing plan, first try to pinpoint where it’s failing. It could be that you aren’t offering what users want, or your message isn’t compelling enough, or you’re not clearly conveying your app’s benefits…there is a long list of possibilities.
- Decreases Customer Acquisition Cost (CAC) – Although it’s great to get new customers, don’t forget about the ones you already won over. Getting new users to convert is far more costly than convincing current customers to make repeat purchases. This will save you money while bringing in more revenue from loyal customers. So if you use your existing customers to increase your app’s conversion rate, your CAC will simultaneously decrease.
What is a good conversion rate?
This really depends on your app but there are some guidelines that can give you an idea of what you should be aiming for.
Here are some examples of average conversion rates:
- 1-2% for most apps.
- 10% for games.
- 1% or less for SaaS apps.
- 1-5% for travel apps.
- 1.56% for ECommerce apps.
The differences in average conversion rates reveal that there is no set standard and the average rate is entirely dependant on the type of app.
What should I be tracking?
At this point, you might be wondering how to decide which action should be considered a conversion for your app.
First of all, what you choose to track and view as a conversion has to play an important part in your monetization strategy. That way, your app’s conversion rate will be able to tell you when it’s time to change something in your strategy.
When you want to improve your conversion marketing to get better results, there are two main questions to ask yourself:
- What are my app’s conversion goals?
- What strategies can I use to reach those goals?
The answers to these questions will guide you through the processes of conversion rate optimization. If you work hard and stick to it, you will notice a positive difference in your app’s conversion rate.
No matter what your industry or app’s category is, the conversion rate is an important metric you need to know. Use it to gauge the success of your marketing strategy and improve ROI.