5 Best Practices of Top-Earning Mobile Apps and Games

Amazon is famously metrics-driven and obsessed with customer satisfaction. In its role as a mobile app publisher, it is perfectly positioned to analyze and interpret millions of mobile downloads and in-app purchases, leading to some surprising and intriguing insights into mobile app engagement and monetization. Here Amazon presents the results of a cohort analysis designed to identify best practices common among the top 50 revenue-generating apps and games in its Amazon Appstore for Android.

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1. MARIO VIVIANI T E C H N O L O G Y E V A N G E L I S T, A M A Z O N A P P S T O R E U K @mariuxtheone marioviviani 5 BEST PRACTICES OF TOP -EARNING MOBILE APPS AND GAMES
2. I T ’ S A - M E ! Ma r io V ivia n i Technology Evangelist, Amazon Appstore UK @mariuxtheone Android Developer from 2010 95+ apps published 12,000,000+ downloads Google Developer Expert 2013-15 Startup Founder, Co-Worker Speaker at: Droidcon, Android Dev Days, Google I/O 2015
3. Take Care of Your Best Customers
4. Casinos Defined Common Terms Whales, Dolphins, Minnows Monetization strategy is segmented, based on different customer experiences at different price points. F2P: • Minnows = 90-98% of users • Dolphins = 50% of revenue • Whales = 3-4% of paying users (<0.1% total) Source: GGV Capital, Feb. 2013 — http://bit.ly/1Ldu5Fu
5. Power-Users Are Not New Well-Known across Industries Mobile isn't the first industry to recognize the importance of highly engaged customers.
6. They Spend on the Things They Love Substantial Spenders When it comes to their passion (whatever it may be), power-users spend more money than the average fan.
7. What Do They Look Like to Us? Amazon Appstore Power-Users • Spend $50/month or more • On average, spend >$200/month • Are concentrated in US, Japan, UK, and Germany Source: Amazon Appstore
8. Power-Users Are Loyal to a Few Apps Focused Passion In January: 80% of customers who spent $1,000 spent 75% (or more) of that on just two titles. Source: Amazon Appstore
9. Offer Specials and VIP Exclusives Reward that Loyalty Give your most dedicated customers something extra, whether it be a special discount, early access, or maybe exclusive content.
10. Understand the Connection Emotion & Spending Knowing why they buy is critical to making your app attractive to power-users—and more importantly, worthy of them.
11. Connect with Who or What You Admire Stand Out, or Fit In? Go big: Identify with someone, a broader community, or something that inspires you. Go small: Establish yourself as part of an elite tribe.
12. TAKE CARE OF YOUR BEST CUSTOMERS Strategy #1 • Recognize the importance of the "vital few" • Reward loyal customers as VIPs • Satisfy their emotional desires
13. Make It Easy to Buy
14. 0 24 48 72 96 120 144 168 192 216 240 264 288 312 EARLY ENGAGEMENT IS CRITICAL In-App Purchasing by Hour Source: Amazon Appstore Hours since download 18% Total customer value
15. KEEP CUSTOMERS ENGAGED In-App Purchasing Adds Up over Time Source: Amazon Appstore Engage customers early 37% of customers who will purchase, do so on day 0 Keep them in the app 48% of repeat purchases happen within one hour of a previous purchase Give them a reason to come back 64% of revenue comes from 3rd order + 74% of revenue occurs after the first 7 days 56% of revenue occurs after the first 30 days
16. 69% 100% 145% 0% 20% 40% 60% 80% 100% 120% 140% 160% 1-5 Items 6-10 Items 11-15 Items SELECTION DRIVES REPEAT ORDERS More Is Better Source: Amazon Appstore # of In-App Items for Sale ARPPU INDEX: Average = 100% 1.14% of customers generate 30% of sales
17. 0% 20% 40% 60% 80% 100% 120% 140% 160% 180% 1 4 7 10 13 16 19 22 25 28 Source: Amazon Appstore Days Owned +60% average selling price REGULARS SPEND MORE Price Sensitivity Declines over Time
18. Conversion Rate INDEX: Average = 100% 147% 100% 52% 0% 50% 100% 150% 200% 1-5 6-10 11-15 Price Points MANY PRICE POINTS MAY BE CONFUSING Offer Price Variety, but Not Too Much Source: Amazon Appstore
19. What are the top-grossing developers doing differently?
20. COHORT ANALYSIS Difficult to Compare Apps Directly • Based on Behavioral Analytics • Shared experience • Usually limited to a specific time period • Related individuals form "cohorts" • People who had measles at age 9 • Tall pilots who flew for BA in March • Customers who purchased within one week of download Examples
21. COHORT ANALYSIS Top Earners vs. Everyone Else Looking at all customers who installed a Freemium app on a specific date. Split into to two populations (cohorts): Cohort 1: Top 50 App or game was one of the Top 50 Highest-Grossing titles Cohort 2: The Rest App or game was NOT one of the Top 50 Highest-Grossing titles
22. Top 50 The Rest 0% 20% 40% 60% 80% 100% 120% 140% 160% 0 1 3 7 14 30 Days Since Installation Relative Performance SALES & REVENUE Purchase Count x Average Transaction Amount Source: Amazon Appstore
23. Does item quality alone account for the difference in average IAP transaction amount?
24. ASSORTMENT BY PRICE POINT Total Marketplace 31% 29% 7% 12% 11% 5% 3% 1% 14% 11% 6% 3% 16% 16% 11% 9% 0% 5% 10% 15% 20% 25% 30% 35% $0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99 % of Assortment % of Sales Source: Amazon Appstore
25. ASSORTMENT BY PRICE POINT Top 50 Only 28% 15% 10% 13% 11% 9% 9% 5% 32% 19% 7% 4% 10% 12% 5% 4% 0% 5% 10% 15% 20% 25% 30% 35% $0.99 $1.99 $2.99 $4.99 $9.99 $19.99 $49.99 $99.99 % of Assortment % of Sales Source: Amazon Appstore
26. MAKE IT EASY TO BUY Strategy #2 • Keep customers engaged • Maintain a healthy selection • Limit number of price points • Offer higher-value items
27. Optimize the Experience
28. REDUCE USAGE BARRIERS Don't Inhibit Frequent Use
29. Encourage Longer Sessions Tune Usability / Difficulty Too hard, and users will abandon. Too easy, they may get bored.
30. Top 50 The Rest 0% 10% 20% 30% 40% 50% 60% 70% 0 1 3 7 14 30 Days Since Installation Active Users Source: Amazon Appstore USER ACTIVITY At Least One Session/Day over First 30 Days
31. Top 50 The Rest 0 5 10 15 20 25 30 0 1 3 7 14 30 Days Since Installation Total Minutes Source: Amazon Appstore TOTAL TIME IN-APP Sessions/Day x Average Session Length
32. Show Clear Value & Bonus Savings Simplicity Sells Use tabs and tiles to allow users to shop by item type, function, and price. Show “extra” value of more expensive items. Catalogs following this format raised ARPPU 75% over the store average. Source: Amazon Appstore
33. Explain How to Purchase Items in Your App Tutorials Really Help The best tutorials show features and benefits of each items so the customer can gauge value, boosting conversion by up to 150%. Source: Amazon Appstore
34. Show Customers How to Apply Their Purchases Tutorials Really Help Good post-purchase tutorials can have a dramatic impact on repeat sales. The best ones we saw showed 65% more repeat purchases. Source: Amazon Appstore
35. OPTIMIZE THE EXPERIENCE Strategy #3 • Reduce usage barriers • Tune usability / difficulty • Simplify purchasing choices • Explain how to buy items • Explain how to use purchased items
36. Support Social Engagement
37. Let Them Tell the World Why They're Great Enable Status Updates Users like to highlight in-app accomplishments and ascribe social status to the reactions they get from friends and followers.
38. Achievements and Leaderboards The Lowest Bar for Social A little friendly competition can be a powerful motivator to play longer and remain engaged.
39. SUPPORT SOCIAL ENGAGEMENT Strategy #4 • Let users share their activity • Include achievements and leaderboards (games)
40. Encourage Advocacy
41. Let Them in on Your Cool Plans and Updates Communicate with Your Users The right message at the right time can help you build a connection beyond a single app or transaction.
42. CELEBRATE USER ENTHUSIASM Nurture Creative Expression
43. LET USERS EXTEND THE EXPERIENCE Enable User Contribution Minecraft Trivia Crack
44. MERCHANDISE Physical Goods
45. ENCOURAGE ADVOCACY Strategy #5 • Engage with influencers • Celebrate creative expression • Allow user contributions / content creation • Offer branded merchandise
46. Quick Recap
47. 5 Strategies of Top Earners 1) Take care of your best customers. 2) Make it easy to buy. 3) Optimize the experience. 4) Support social engagement. 5) Encourage advocacy.
48. THANK YOU! Mario Viviani @mariuxtheone @AmazonAppDev vivianim@amazon.co.uk developer.amazon.com/appstore