One of the reasons why marketing managers are often hesitant to get involved with mobile marketing is because the results are seen as difficult to measure. This often makes it harder to get buy-in from other departments who want to see cold hard evidence of what they are getting for their marketing spend.
The good news is there are a few ways you can measure the success of your mobile marketing, and determine whether or not you are getting a good return on your investment.
Whats the best way to measure mobile marketing?
When trying to calculate the ROI of your mobile marketing campaigns there are a number of ways you can go about it. By looking at one or more of the main metrics you will be able to see whether your mobile marketing efforts are actually working and track them over time.
These are the main metrics used by organisations to track the results of mobile marketing:
Time spent in the app
Revenue generated from in app advertising
Once you have chosen the metrics you want to measure its a good idea to compare them against the average to find out where your organisation falls.
For example, if you are looking at your app ratings, the average rating for an iOS app is four stars, while for an android app its 4.1 stars. If your app is falling below this, it probably means you need to re-evaluate it and do some troubleshooting. If you are getting ratings above this, youll know you are doing a good job and your customers are happy with your app.
Cost per customer acquisition is another common way to measure ROI and this is very easy to apply to mobile marketing. Work out how much you have spent on your mobile marketing in a set period of time and divide it by the number of new customers you have acquired during the same time period. This will give you your customer acquisition cost.
The average cost per acquisition for an iOS customer is $1.78 and for an Android customer its around $2.51. If you aim for this figure, you can plan your mobile marketing budget accordingly and by tracking your cost per customer acquisition you can determine whether or not you are spending too much on your mobile marketing.