5 Tips For Converting App Downloads Into Revenue

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Updated on: August 23rd, 2022Ken Braun6 min read
5 tips for converting app downloads into revenue

People download and install apps at a tremendous rate but you need to read our 5 Tips for converting app downloads into revenue if you actually want to make money after that initial installation.

For those who don’t know, app retention rates are horrendously bad. How bad you ask? The number is somewhere between 15 and 20 percent, depending on which surveys you feel are most accurate. As there are multiple surveys that generally support each other, which means 80 to 85 percent of people drop an app within the first 30 days after downloading it.


In some cases it is the fault of the app itself as it can have bugs or a bad design that turns users off, but there is also the important fact that app developers, marketers and publishers are still learning the best methods to attract interest and engage the right user base to ensure that the people who end up downloading the app are the end users that will create revenue for them.

So, with that being said let’s look at 5 great tips for making money off those apps!

Top 5 Conversion Tips

  1. Always measure CPA – CPA stands for cost-per-action. In marketing this can also be called pay-per-action or cost-per-conversion. Basically you do this to form a pricing model to understand how much each action costs you. This method is far superior to the CPI, or cost-per-install method many developers use which is a rather useless number when you consider that 80 percent drop rate. With CPA, you are looking to focus your ad spending on those actions that result in users who actually engage in activities with your app beyond that 30 day initial window, such as registering, upgrading or making some form of purchase. This in turn will lead to the best ROI as you won’t waste time and money on marketing to the people who will drop you anyway.
  2. Never stop testing – Just because your app has launched does not mean that the testing phase has ended. In fact, the opposite is true as now the testing phase has truly begun because your goal is to optimize users’ activities after the app has been downloaded. So what is the end goal of your app that will make you revenue? Start from that point and test from back-to-front using analytics and any other method possible to find out what causes problems for users and prevents them from doing something to make you money. On top of that, post-launch testing allows for better modifications to an app to help increase your conversion rate based on actual feedback and new ideas.
  3. Find the right initial audience – But…isn’t everyone going to want my app? Nope, sorry but they won’t. Unfortunately far too many people try and market to the masses, which in the crowded world of apps is the wrong approach. Each app has a specific market and you need to focus on that market first and foremost. Your app is going to provide value to a particular demographic that you need to identify and then focus marketing on targeting those users that are most likely to convert. You can do this by building profiles from active users, looking at the users of similar products and a few other methods to find the group that you need to focus on first and foremost.
  4. Don’t stop targeting audiences – This is a follow-up to the above point. Just because you set an initial target and launched your app does not mean you shouldn’t be re-targeting as you go. Just like testing an app after launch and making improvements, re-targeting after launch is valuable as a way to re-engage initial users and also find new users based on a more complete understanding of how users are currently using your app. This will also let you find holes in your existing marketing plan to make sure they see the ad for your app in a way that makes it fulfill a need or add value to another experience.
  5. Add a conventional marketing push post-launch – The launch of the app has its own marketing push. This is focused and specific to get people excited about the app. However a post-marketing push is just an important using social media, email marketing or push notifications to remind people about how great your app can be in solving a problem they have. People are different and some might ignore a launch party but will be very receptive to a post-launch ad as you are now marketing a proven commodity with feedback and ratings. Use any and all information channels available to connect to customers and potential customers to ensure you are giving your app the best chance possible to create revenue.

Making money is almost always hard work. Like most businesses that are directly involved with a large customer base to be successful you have to work hard to develop your product and marketing program to not only provide value to customers but also ensure that they are aware of that value and in turn will want to use your product. Our Top 5 tips for converting app downloads into revenue will ensure that you are following the necessary steps to develop and maintain an ongoing relationship with customers that will in turn generate profits for your business.

Published on: July 29th, 2015
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