• by Hugh Reynolds , June 5, 2014

What makes a mobile app successful? Is it a well thought out user interface? Or is it a large number of downloads? The answer to both those questions, as you’ve probably guessed, is “no.” A mobile app is a success when it’s delivering on your specific business objectives. And in many cases, that means when it is delivering revenue.

Although mobile apps are more popular than ever before, many businesses still struggle with getting users to transact from their mobile device. Why? Companies need to understand first and foremost that just because someone has installed your app, doesn’t mean they are a customer. In fact, recent research suggests that fewer than 2% of users are actively buying on mobile apps.

The reality is that it doesn’t take any great effort to install a free app. The challenge lies in turning that small commitment into real revenue. That’s where marketing comes into play. Users have their smartphones within arm’s reach 95% of the time, and check them somewhere north of 100 times a day. A spot on that home screen can be worth a dozen loyalty schemes, so getting that first purchase is absolutely crucial.

To turn a user into a paying customer, it is vital to think in terms of campaigns — campaigns that define a target audience, a desired outcome, an offer or incentive and a chosen channel of communication. When you adopt that approach, you’ll be delivering regular, targeted, relevant marketing campaigns that continually look to move users along your “pipeline” — from new downloads to engaged users, and from engaged user to payers.

Here are a few tips to help you along the way:

1. Be relevant. If you are delivering campaigns that are intended to change behavior and deliver revenue, it helps to get as specific as possible in terms of who you talk to. In the world of mobile apps, you have access to a huge amount of data. Use it to make your campaigns ultra-targeted and relevant. Deliver offers and promotions that meet the user’s wants and needs.

2. Experiment with different approaches. In my experience, it’s possible to see increases of over 100% in revenues simply by changing theverbiage of a purchase or offer. The best way to go about finding the right mix is to A/B test every step of your purchase process. This helps to ensure you’re delivering the optimal experience and make it as easy as possible for the user to make a transaction.

3. Remember ROI. A cardinal sin in marketing is to incentivize behavior that that would have occurred on its own. So be careful when constructing campaigns.  For example, aggressive first purchase campaigns should be restricted to users that data suggests are highly unlikely to convert without an action. Don’t make the mistake of aggressively attempting to drive a first purchase at the expense of all the other metrics that matter to your business.

With these simple tricks, you’ll be well on your way to converting that download into cash. Have another trick of the trade? Share it in the comments below.