Want to double your app's profits? Of course! Instead of trying to improve everything in your app all at once, focus on just ONE of these 4 metrics. Double any 1 of these, and the $$$ will follow!

1. The Buzinga Podcast
Ep 8: 4 Ways To Double Your App’s Profits
• Hey guys, Logan Merrick here and you’re listening to
episode 8 of The Buzinga Podcast:
• The number 1 resource for startups building and growing
their business in the tech space.
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2. In this episode…
• Why cash flow is the secret weapon to winning
investors’ hearts
• How to double your app profits by pulling on 1 of 4
levers:
1. downloads
2. conversions
3. Frequency of purchase
4. Profit margins
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3. 4 ways to double your app profits
Doubling any 1 of these 4 levers will double your profits:
1. Downloads
2. Conversions
3. Frequency of purchase
4. Profit margins
Don’t try and double all 4 at once.
Pick 1 or 2 and watch the spill over happen!
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4. 1. How to double your downloads
1. Focus on broad reach acquisition strategies that are highly targeted
to your ideal app user.
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5. 1. How to double your downloads
2. Know your target user back to front:
• Where they hang out online
• What blogs and publications they follow
• Who they are influenced by
• What offers they respond to
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6. 3. Use low cost lead magnet strategies, such as:
• Getting publicity
• Building up your social following and email list
• Creating valuable content and distributing it to the right people
• Referral/incentive schemes to get people through the door
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1. How to double your downloads

7. 4. Optimise your app for easy discovery on the app store.
See also: The Marketer’s Guide To Ranking #1 On The App Store
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1. How to double your downloads

8. 2. How to double app conversions
• Getting people into your app is the easy part – now you’ve got to
wine and dine them!
• Convert app downloads into app $$$
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9. 2. How to double app conversions
• According to Apptentive’s research, only 40% of customers continue
to use an app they download just 30 days ago.
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10. 2. How to double app conversions
The good news:
Localytics’ research suggests that if you can encourage 3 app sessions in
the first 3 days, only 29% of your users will churn.
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11. 2. How to double app conversions
How can you encourage 3 app sessions in the first 3 days?
1. Nail your onboarding process
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12. 2. How to double app conversions
How can you encourage 3 app sessions in the first 3 days?
2. Don’t skimp over UX and UI design.
• UX and UI are the first things a user notices once they’re in your app.
• If people can’t understand how to use your app in the first session,
they WON’T be back.
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13. 2. How to double app conversions
How can you encourage 3 app sessions in the first 3 days?
3. Use viral techniques, push notifications and special offers
• These tactics are at the intersection of marketing and product design
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14. 3. How to double frequency of purchase
• What qualifies as an app purchase?
• This will depend on your monetisation model.
Examples of an app purchase:
• a click on an ad
• A physical product that was bought at checkout
• Someone who upgraded to a premium account
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15. 3. How to double frequency of purchase
Tactics to increase frequency of purchase:
1. Make your purchase funnel shorter.
Optimise every screen to push more people to complete
the last step in the desired action.
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16. 3. How to double frequency of purchase
Tactics to increase frequency of purchase:
2. Optimise the timing and format of your ads to prompt
purchase
• (app analytics and user behaviour will give you great
insights on this)
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17. 3. How to double frequency of purchase
Tactics to increase frequency of purchase:
3. Nurture your customers with timely, relevant content
• limited-time discounts, in-app credits, exclusive videos
and articles
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18. 4. How to double profit margins
To improve profit margins you can focus on
1) Reducing cost per action
2) Increasing customer lifetime value
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2 metrics you need to focus on

19. 4. How to double profit margins
1. Cost per action (CPA)
• Definition: How much it costs to convert an app user
into a paying customer.
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2 metrics you need to focus on

20. 4. How to double profit margins
1. Cost per action (CPA)
• Here’s how you calculate it:
Total costs associated with converting users to make a
purchase divided by total number of purchases, within a
specific time period.
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2 metrics you need to focus on

21. 4. How to double profit margins
2. Customer lifetime value (CLTV)
• Definition: The value a customer contributes to your
business over their lifetime using your app.
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2 metrics you need to focus on

22. 4. How to double profit margins
2. Customer lifetime value (CLTV)
CLTV isn’t as easy to calculate – it will depend on your app’s
goals as well as a few other factors.
Check out the shownotes for some resources to help you
calculate your CLTV.
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2 metrics you need to focus on

23. 4. How to double profit margins
So....
How do you improve profit margins?
Either by:
1. Reducing cost per action
or
1. Increase Customer liftime value
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2 metrics you need to focus on

24. 4. How to double profit margins
1. How to reduce CPA:
Track and analyse your marketing efforts to prune your
spending on acquiring and converting customers to
purchase.
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How to reduce CPA

25. 4. How to double profit margins
Setting up analytics for your marketing campaigns can show
you:
•Where are new acquisitions coming from? Which
channels?
•What is the return on investment for each campaign over
all channels?
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How to reduce CPA

26. 4. How to double profit margins
Bonus tip:
A/B test your campaigns and optimise accordingly.
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How to reduce CPA

27. 4. How to double profit margins
2. How to increase CLTV:
Simply, get more value out of your existing app users!
.
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How to increase CLTV

28. 4. How to double profit margins
• Increase their engagement within your app.
See also: 10 Addictive App Re-Engagement Strategies
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How to increase CLTV

29. 4. How to double profit margins
•Offer different levels of purchase options to cater to every
app user.
This may not be relevant to every app but there are 3
options for getting more $ value out of customers…
.
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How to increase CLTV

30. 4. How to double profit margins
1. Upselling by prompting them to purchase a more
expensive, premium product after they have indicated
interest in your main product.
.
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How to increase CLTV

31. 4. How to double profit margins
2. Downselling by offering a slightly cheaper, introductory
product to users who you have identified as reluctant to
convert.
For example, a one month discounted trial before
committing to the yearly subscription.
.
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How to increase CLTV

32. 4. How to double profit margins
3. Cross selling by looking at what users have purchased (or
ads they’ve converted) and prompting them to purchase
related or complementary products that they might find
valuable.
.
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How to increase CLTV

33. The wrap up
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•Most startups will need to raise investment at some point
in their lifetime.
•Show investors you’re a healthy horse, not a unicorn, by
either:
1. Increasing downloads
2. Increasing conversions
3. Increasing frequency of purchase
4. Increasing profit margins
And watch the money come in!

34. Further resources
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• Hope this has been engaging!
• If you want to learn more about how to impress
investors then check out our blog, I’ve included 4
relevant blogs in the show notes:
1. What You Need To Get Done Before Pitching Your App
To Investors
2. Template: 3-5 Year Financial Forecasting For App
Startups
3. The Information Memorandum You Need To Hand
Investors After Your Pitch
4. The App Developer’s Complete Investment Kit

35. The Buzinga Podcast
Ep 8: 4 ways to double your app’s profits
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• How you can listen to this podcast:
1. On iTunes – please subscribe!
2. Through your favourite podcast app on your
smartphone
3. Listen on our blog at buzinga.com.au/buzz with
shownotes for each episode.
4. Watch with accompanying slides on Youtube – please
subscribe to our channel!
5. Just read the slides on Slideshare

36. Thanks for listening!
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• See you on the next episode!