Defining the Return-On-Investment (ROI) with Marketing Automation

Is it worthwhile to invest in Mobile Marketing Automation, and if yes, how can you convince your colleagues to agree on this investment? How is ROI measured in terms of Mobile Marketing Automation? ROI refers to the difference between cost and value. A value in Mobile Marketing Automation is a combination of three main areas: User engagement, user retention and revenue generated.

User Retention

Who cares how many app downloads you have? Only retained users count. Tracking user retention rate helps when you are analyzing the impact of acquisition costs and making critical long-term business decisions.

User Engagement

The entire point of Mobile Marketing Automation is to prevent one-time app installs and increase daily users. We need to measure user engagement to have a quantitative measurement to make important business decisions. User engagement is a strong factor in determining user lifetime value. Engaged users are the key to successful business results. Moreover, increasing user engagement within an app decreases the need to invest more resources in user acquisition.

Keep in mind that even if you don’t use direct monetization, there will always be certain actions that are more valuable than others. Use a point system to keep track of these options. Prioritize the actions that are worth higher values. 

user retention mobile marketing automation

Revenue generation

Businesses need to be able to generate revenue. Revenue generation is the undisputed number one priority for all marketing campaigns. It doesn’t matter what your business is, optimizing by the dollar is important.

It all starts with having a strategy. Creating attainable goals and will push your business increased purchases and impressions. We’ll talk about it later in this guide but it’s important to remember that intelligent messaging is the key to increased revenue through Mobile Marketing Automation.

user retention mobile marketing automation revenue

Major benefits of Mobile Marketing Automation

Increase time efficiency

Saving time should not hinder results. An automated marketing solution should not sacrifice function for time saving. The solution should be smart and understand all the goals and functions of your company. A badly optimized automated marketing solution will not only cost you more time but also more manpower. This defeats the purpose of automation.

Your system should include the following:

Programmatic

Automation is the point. Recurring message capabilities and set-up actions should be limited.

Minimize coding

Mobile Marketing Automation systems operate under the impression that it can operate hands-free. After the system is installed there should be no need for engineers or any hands-on work. Additional coding should be minimized, if not eliminated. Valuable resources and time should be saved and placed into research or developing core features.

Self-learning

Intelligence is more important than questions. Mobile Marketing Automation should take the guess work out of content distribution. The integration between business goals and messages should be smooth and flawless.

Survey and improve

Emphasis on the mobile part of Mobile Marketing Automation. Web as well as mobile experiences should be drastically different in both function and usage. Mobile Marketing Automation should allow for the data-rich internet to be accessed freely and smoothly on mobile. Knowing the exact ROI on every campaign allows you to optimize for success. The system should be intelligent enough to trigger delay and control delivery time.

Optimize user experience

You should understand that Mobile Marketing Automation affects all parts of the business. Brand image is just the surface. Mobile marketing is the most personal type of marketing. Each action you take in your campaign affects the user directly. Whether generic or personal, user typically have a low tolerance of mistakes.

Follow these points to prevent uninstalls:

Make the content good

Relevant and strong content gives value to the readers. Content that is useful is less likely to be unsubscribed from.

Don’t over message

Nobody likes spam. Just don’t do it.

Prevent splash damage

Don’t just remember the positive results. Oftentimes, negative results will tell you more about the current situation of your app. Try your best to achieve your goal without causing damage to another factor. Every action you take or campaign that you run effects the business as a whole.

The cost of adopting a Mobile Marketing Automation system

At the end of the day, the only factor that measures success is revenue. Driving engagement is only a process to increase revenue. Anyone could increase user engagement with unlimited money. As a marketer and a Growth Hacker, your job is to increase user engagement and retention within a certain budget.

Cost of Mobile Marketing Automation is mainly dependent on two factors:

Client monthly active users count (or MAU)

The number of people that have seen your app in the past thirty days. Most Mobile Marketing Automation systems are cross-device and cross-platform. These advanced systems recognize users and create a unique profile for every individual customer.

Functionality-to-cost

Different companies will offer different systems and tiers for their products. Products and tiers that offer more functionality will without question cost more. Have a clear understand of the needs and complexity of your company in order to choose the correct product and suite of functions. These tiers and unique products give you flexibility and options that one should fully take advantage off. Overpaying for functions or having a lack of functions both lead to stunted business growth and development.

How does this factor into the budget?

Statistics show that mobile marketing systems account for less than 5% of medium to large companies, however, occupy over 6% percent of the budget for smaller companies.

What does this mean?

Determining the cost of your Mobile Marketing Automation system should not depend on the number of messages sent. Mixing the number of messages sent with their costs and effectiveness decreases trust. Burying people with numbers is usually not a good sign. Make an investment based on how the system aligns with your goals.

Persuading internally

What if the executive team isn’t onboard? Conveying the situation and addressing their concerns is the key to persuading them that Mobile Marketing Automation is a solution to their needs and goals.

Suggestions for preparation:

  • Do your research and have a good understanding of the goals of the company.
  • Present a case that appeals to the board.
  • Be ready to answer any questions and/or concerns.
  • Have data and evidence to support your case.

Oleksiy Kuryliak

Marketing Consultant, B2B Marketer & Startups Advisor with 10+ years in marketing technologies, business development, startups & political consulting.

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