Best Practices for Increasing App Monetization | Amazon Moments

Best Practices

Learn how to maximize your campaign ROI

Starting your first campaign

1. Pick your moments

Prioritize metrics important to your business goals, e.g. increase payer conversion rate, increase retention, increase participation in event, etc. Identify actions that signal if users have higher propensity to hit these metrics, e.g. if a free trial user completes three workouts in the first 10 days, there is a 60% chance user will convert to a paid user. To help you get started, we recommend testing campaigns across the following three segments:

  • Retarget and win back payers by offering them rewards for watching new content or buying an IAP on sale.
  • Increase payer conversion by encouraging users to upgrade from a free trial to subscription.
  • Increase engagement by rewarding users for conquering pinch points in your app.

2. Set your price

Select a cost per action (CPA) that is less than the lifetime value (LTV) of the customer segment, e.g. if a lapsed payer is worth $200 then set a CPA at $50.

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

 

3. Choose your reward

Customers convert better when a complete reward versus a discount is given, e.g. customers prefer receiving a free $20 shirt versus $20 off a shirt that is valued $40.

  • Popular rewards include electronics, toys, and Amazon credit. A/B test to find the right prize for your customers.
  • A free physical item or gift typically performs better than Amazon credit.

Clear communication = campaign success

A/B testing suggestions

Differentiate audience segments

Test campaigns across active, lapsed, and new payers as well as active, lapsed, and new non-payers.

Identify pinch points

Find high friction experiences in the app and use a reward to convert your user into a payer. This can include difficult levels, limited time events, and adoption of new app features.

Find qualities of loyal app users

Identify actions that are indicative of life-long app users and use a real-world reward encourage that action.

Create a sense of urgency

Give users a three-day deadline to complete the Moment; a sense of urgency increases user completion rates.

Test across platforms

Users on different platforms may behave differently, so be sure to test and optimize actions and rewards across iOS, Android, and Fire OS.

Test different reward types

If completing the Moment is difficult, the reward amount should be higher. If completing the Moment is easier, the reward amount should be lower. Some users will prefer physical items, while others prefer digital items.

Offer complete rewards

We have found that users convert better when a complete reward versus a discount is given. For example, users would prefer receiving a free $25 Fire TV stick versus $25 off an Echo Dot that is valued $50. To accommodate this higher priced CPA and reward, we recommend setting an action that is more difficult to complete.

Always be testing

Never stop A/B testing. An action and reward that are successful in one of your apps may not be equally successful in another one of your apps. Like ad fatigue, a particular action and reward might not work on a user cohort indefinitely so you must A/B new actions and rewards.

Evergreen vs event campaigns

Evergreen

Evergreen campaigns are “set it and forget it” marketing strategies to help scale your business. Identify pinch points in your app that drive the most revenue and enhance the experience with a Moment and reward. If you have a gaming app and Level 30 is a difficult level, you can reward your user a $5 physical or digital item for purchasing a $10 IAP that will help your user pass the level. If you have a subscription entertainment app and your subscribers tend to churn after month 4, you can reward your user at the end of month 4 to extend their subscription. Another strategy is to identify app events indicative of a lifelong user.

Event

Event campaigns are used to enhance your recurring in-app promotional events. If you have a gaming app and host monthly tournaments, you can use Moments to enhance the prize offerings and increase player progression in the tournament. Entertainment apps can promote season premieres by rewarding users for re-watching the previous season. Fitness apps can boost user engagement with seasonal events like New Year’s resolutions and pre-summer workouts. Extend your A/B testing to event campaigns – successful campaigns can be upgraded to evergreen campaigns and continuously drive desired metrics.

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