These numbers might be acceptable if your biggest app marketing goal is user acquisition, which was the case for 71% of marketers in North America surveyed by InMobi in July 2017. But the next step is engaging and boosting users' lifetime value (LTV), an important factor in retail. While it may seem logical to try and drive conversion immediately with expensive targeting and keyword buys, fostering loyalty can pay off down the road.
All is not lost when a mobile user installs a shopping app and doesn’t immediately convert. According to data released today by AppsFlyer, just 3.5% of nonorganic app installers in the US made a purchase on the first day. By day seven, 5.9% made a purchase, and by day 30, that figure jumped to 9.5%.
Organic app installers—i.e., users who discover an app on their own—are far more valuable than users who install apps spurred by ads or other incentives. Per AppsFlyer, 10.9% of global organic app users made a purchase within 90 days, compared with 8.9% of nonorganic users. The difference in calculated LTV at 90 days was even more pronounced: $20.63 for organic users vs. $7.10 for nonorganic users.
This shows that despite all the paid ads and keywords advertisers might use, brand familiarity is important for the retail category. When a user installs a retail app, they know what they are looking for, rather than browsing or being open to discoveries as they might with a gaming or entertainment app.
For similar reasons—installation of a retail app signals greater intent—mobile app users are are also more valuable than mobile web (and desktop) users. More than two-thirds of digital transactions in North America take place on mobile, the majority of them via mobile app, according to Q1 2018 data from Criteo.