Now segment for value and engagement

Mar 21

Now segment for value and engagement

Think of a time when you were part of the crowd at a sports or music event. The performers probably see you like this:

lonely as a crowd

Lonely as a crowd

But joining this crowd did not make you instantly the same as everyone else there. You still expect to have your individuality recognised. The same is true with any crowd. What about Apps? Consider this circled number:

a crowd of users

credit: androidcentral.com

That’s a lot of downloads – a whole crowd of them. What do you think of when you picture that many downloads? Do you see one identity like the crowd above? Does it remain only a number? Do you try assign each of these 10 million downloads to an individual? Is it possible to even come close to keeping track and delight that many individuals?

The wisdom to draw from this train of thought is that crowds don’t use your Apps, individuals do. Your marketing and engagement efforts shouldn’t be aimed at the crowd, but individuals….and to automate that.

Smart Marketers and App teams are humanising their App audience from Day 1.

But at the same time, you cannot possibly cater to each individual. So what’s the balance?

The answer is segmentation.

By creating the right segments, you can gain the right level of visibility into your user base. This allows you to learn, test and adapt. It also allows you to optimise the experience for each of them.
Segmentation is critically useful in a wide variety of contexts. For now, let’s take an example of segmentation in terms of engagement and activity.

Segmenting user engagement to increase value

Let’s use this model to explain the benefits of segmenting. This categorises users into their level of engagement with the App.

App Audience Segmentation

What do these segments mean?

  • Zombie: They may have your App downloaded, but their engagement levels are pretty much dead. The App now sits as one of the ignored, ready to be deleted when space is needed. The question is…how do you move someone out of this segment…and how do you stop them from becoming a zombie in the first place?
  • New installer: Fresh users with a low initial value but they are full of potential. A well designed on-boarding process is essential to making sure that they don’t just open the App once.
  • Type kicker: Here’s someone who is not actively engaged, but instead just playing around with a few basic features. Many new users start here. They don’t push the App to its potential, but are just observing how well the App handle the core essentials. Engagement is low and they are in danger of becoming zombies without proper nurturing and communication.
  • Grinder: This is a segment of heavy users that never make any in-App purchases or takes on a premium subscription. A vital consideration for freemium model Apps is how to convert this segment to sharers or purchasers.
  • Sharer: Provides high value, not in terms of direct revenue but from viral promotion. Engaging your sharers and providing them with incentives to share more is a key investment in your marketing strategy.
  • Purchaser: These are these are probably your “long-tail” they make one or two purchases which means which is good for bottom line – but can you convert them to a whale?
  • Whale: These are the guys that makes your bottom line happy. They not only purchase, but are highly invested in your App and provide enormous value for your business. They can also be your strongest advocates as they’ve made a financial investment in your products.

 

In the next post…

We’ll continue this post and discuss strategies for each segment, what other segments
you didn’t know you have
and how you execute on driving low value segments to higher value. Also why “higher value” is not always about money. To get notified about the next post just register by clicking below.

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