Actions

An action is the activity that you want your customer to complete as a result of your Moments campaign. Examples include: watch 10 min of video, complete level 7, run 3 miles, complete a learning course, or become a paying subscription.

If you are unsure about what actions will be best for your business, this section will describe actions that provide consistent success for the companies that have tried them.

Choosing Actions

When deciding what action you want you customer to complete, leverage existing metrics that are important to your business goals. Examples of metrics: increase payer conversion rate, increase retention, increase participation in event.

If you have known existing signals to increase customer likelihood to hit these metrics, leverage these first. For example, if a free trial user completes 3 workouts in the first 10 days, there is a 60% chance that user will convert to a paid user.

If you're starting completely from scratch here's the three top actions from existing customers:

  • Win back payers – Re-target your lapsed payers with digital ads, push notifications, and emails that highlight a reward for watching new content, using new features, and/or buying an IAP on sale.
  • Increase payer conversion – If you are a subscription app, encourage your users to upgrade from the free trial to basic subscription by offering a physical or digital item equal or greater in value to one month’s subscription. For IAP apps, offer payers a reward for buying a higher priced IAP (for example, if they historically buy $25 IAPs, offer a $10 reward for buying a $50 IAP.) This technique introduces your users to a new premium product that they may be inclined to purchase in the future.
  • Increase engagement - Find high-friction experiences in the app and use a reward to encourage users to conquer the task. This can include difficult levels, limited-time events, or adoption of new app features.

Setting Cost per Action

Moments uses a simple CPA (cost per action) pricing model, so you only pay when users complete the action. Run campaigns with consistent ROI by setting CPAs that do not exceed your customer lifetime value (LTV). For example, if keeping an active payer engaged is worth $200, you can set a high-value action and offer a $40 Amazon Fire TV Stick with a comfortable margin of error.

Set CPAs tailored to each user segment, such as a $5 reward for active payers and a $100 reward for top spenders. You can focus your marketing dollars on valuable users who complete high-value actions for ROI-positive campaigns. Customers convert better when a complete reward is given rather than a discount. For example, customers prefer receiving a free $20 shirt rather than $20 off a shirt that is valued at $40.

  • If you are driving payer conversion, we recommend that you set a CPA that is 25% of the LTV.
  • If you are driving engagement, we recommend a CPA of $10 or greater.
  • If you are driving new installs, we recommend a CPA of $3 to $5.

Best Practices

Here are some best practices on choosing the right actions for your Moments campaign and setting cost per action.

Map to your team’s priorities

Identify your team’s priorities and key metrics that you want to improve with your campaign. For example, if your current goal is to increase conversion to payers, you should consider a Do X that is related to player engagement or making a first time purchase. If your current goal is retention, consider a Do X that increases users’ in-app time or related to in-app events that increase frequency of use. If your team is working on improving user experience or flow, select an action that tests a new user flow to compare against the status quo.

Leverage existing data

Review your existing data to identify trigger points within your app that show deep engagement or high correlation with the metrics that your team is prioritizing. For example, perhaps 70% of your paid users visited the app 4 days in a row during the first week of download. Consider setting your action as “Do X in the app 4 days in a row during your first week to win Y.” Alternatively, if you’ve found the average length of monthly subscriptions is 5 months, you can set an action to encourage users to engage with the app more deeply in month 5 to increase your customer LTV. Use the data you have to effectively test actions that will impact your key metrics.

Get creative

What are the different factors that directly and indirectly impact your key metrics? For example, if your key metric is revenue or payer conversion, the most straightforward path to driving revenue is to set the action as “purchase this IAP to get Y.” However, there may be other indirect, creative options that would achieve the same results, such a setting a challenging action with a compelling reward that would motivate users to make in-app purchase to achieve.

Correlate CPA with the effort required to complete the action

Make sure your CPA (and the rewards that it enables) matches the amount of effort required for the action that you’re driving. If your action is simply to download the app and to go through a quick on-boarding flow, the CPA doesn’t have to be very high to motivate users to complete the action. However, if your action is to establish a 30-day streak or achieve level 150 in a game, you should consider much higher CPAs to encourage users to expend the extra effort. Keep in mind that at the point the user is experiencing the Moments campaign, they may not yet be fully engaged and immersed in your app, so set your actions and CPAs accordingly.