Mobile applications are no longer limited to a convenient tool for banking transactions, transfers, investments or payments, but play a fundamental role in commercial communications. They allow us to generate an additional communication channel, where we can transmit, educate and inform customers. So much so that in some companies their digital products also form marketing platforms and / or promotion of other products of the business or third party partners.
When it comes to investing in advertising, a central question that all companies must ask themselves is: What will we get in return? Can we further maximize the value of our marketing efforts? How? The key to answering these questions lies in the ability to measure the return on investment (ROI) in advertising.
In this article, we will share crucial tips for evaluating the ROI of your mobile marketing strategy, highlighting the importance of accuracy for profitable returns. Measuring ROI in the mobile environment is a complex and ever-changing challenge, with multiple variables that need to be monitored and optimized in real time. Marketers need to plan which metrics to track and be aware of the limitations of their data. Accuracy in data attribution becomes a cornerstone for success in this regard.
Ultimately, developing a mobile application is a significant decision that will affect the cost, development time and market acceptance of the product. Meticulous planning and well-organized execution are essential to ensure that your product reaches customers on time and minimize unnecessary expenses and delays. Let’s discover in this article how mobile apps can boost ROI in your business.
Cost and profit optimization of a fintech app
To achieve an outstanding ROI with your fintech application, it is essential to have a thorough knowledge of all fees and expenses, as well as a deep understanding of revenue streams. The main goal is to find a balance between costs and the quality of the service you offer.
In the world of fintech apps, there are several sources of revenue, such as in-app purchases (IAP) that allow users to purchase virtual or real items within the app, in-app advertising (IAA) that generates revenue from the vast majority of users who do not do IAP, recurring in-app subscriptions, and also apps that require an upfront payment for download. But also, developing a fintech app involves a number of costs, from platforms and technologies to outreach and collaboration with development partners.
Here are some tips to effectively reduce development costs without jeopardizing quality.
Reducing costs of a fintech App (without compromising quality)
1. Carefully plan and define your product requirements from the beginning.
2. Create prototypes to fine-tune the user experience.
3. Outsource to a vendor to be your strategic partner in the development of your application if you do not have an internal team and/or the specific knowledge for the type of development you are needing.
4. Create an MVP (Minimum Viable Product) to test your idea before launching the final version.
5. Develop cross-platform mobile applications to reach more users.
6. Use existing platforms and/or technologies to leverage third-party libraries for specific functions and reduce costs and development times. For example, for messaging services.
7. Automate repetitive tasks.
Maximize the ROI of a Fintech App
Although ROI may appear to be a simple metric, its interpretation can be misleading if the underlying data is incorrect or incomplete. One of the worst-case scenarios for marketers is discovering that their input data is inaccurate, which can lead to erroneous decisions without them realizing it, either due to fraud or improper attribution.
Errors in data entry can have long-term consequences that destabilize marketing efforts and hinder the ability to make sound decisions. Recognizing and correcting any flaws in data, as well as ensuring that it is accurate and complete, not only improves decision making, but also reduces marketing spend, thus extending ROI.
To maximize ROI, tracking the right KPIs and analyzing user behavior metrics is essential. In this way, you gain a greater and better understanding of user interaction with the application, which provides valuable information to optimize strategies and obtain higher performance.
The formula for calculating the ROI of your fintech application
The ROI of a mobile application is the indicator that tells us how much is earned for every dollar invested in creating and promoting an app. This ROI is directly affected by the revenue generated from the app and the expenses incurred in its development, marketing and maintenance.
Specifically, these key expenses directly impact the ROI of a mobile app:
- Development: includes the design and programming of the application, essential to create an attractive and functional experience for users.
- Marketing: expenses related to promotion and user acquisition.
- Maintenance: customer support, post-launch updates and other maintenance aspects.
How to calculate the ROI of an App?
To determine the ROI after the launch of the application, you can use the following formula:
ROI = (Net Return on Investment / Investment Cost) * 100
This formula will allow you to evaluate how much you are getting in relation to what you have invested in your fintech application, giving you an accurate measure of its profitability and helping you make informed decisions to maximize your returns.
H2: Effective App Data Management
In the fast-paced world of fintech applications, data management is essential to achieve optimal ROI. Advertisers need to maintain full control over all their cost data and, in today’s market, relying on multiple networks, partners or channels to transmit data regularly, quickly and securely is an almost impossible task.
The need to receive data immediately and in a uniform format is becoming essential in the critical decision-making process. In this regard, Application Programming Interfaces (APIs) that connect directly to the network play a key role. These APIs ensure that data is accurate and constantly updated, almost in real time. There is also the option of ingestion, which allows advertisers to upload ad spend data from a variety of sources before the attribution provider standardizes and normalizes it for further analysis.
When the data management flow is under the full control of the advertiser, the figures are accurate and instantly updated, providing a clear and truthful view of ROI. This effective data management is the key to maximizing the performance of your fintech application and making informed strategic decisions.
Data normalization for consistent ROI measurement
Measuring ROI in a mobile environment that is characterized by disparity in the inputs and variables present in the data coming from various cost sources. The data does not have a uniform level of detail nor is there a uniform frequency in the way these sources report data. Each ad network uses different cost-related metrics: Twitter reports tweets, Facebook reports likes, and so the list goes on. As a result, what you get is a fragmented set of cost data, making business analysis difficult. Worse still, if this differentiation is overlooked, it can lead to confusion and misinterpretation.
This is where data normalization comes into play to ensure that the data provided by the ad networks are adapted to the needs of the analysis. This is achieved by implementing a consistent and well-defined data structure, along with standardization of naming conventions and macro parameter matches. Data standardization aims to make cost data from various sources comparable and consistent, which significantly simplifies informed decision making and enables accurate ROI assessment.
Reliable data attribution
The accuracy of attribution data is at the very heart of mobile ROI evaluation. This technology is designed to ensure that data remains accurate and free of fraud. When attribution data is flawed or inaccurate, the entire integrity of the measurement is compromised, including the ability to obtain accurate cost and revenue information.
A high-quality attribution platform is a useful tool for establishing connections with thousands of partners, ranging from media companies to analytics platforms. Building an attribution platform requires solid technological knowledge and experience, but offers immense value in terms of accurately measuring ROI by providing full control over cost data and facilitating agile and crucial decision making, reducing the risk of errors that impair the performance of a fintech application.
Do you want to develop an application for your business?
At ThinkUp we are a digital product development company, obsessed with quality and specialized in mobile applications and unique user experiences. We create world-class digital products for startups and enterprises, with the goal of transforming and empowering businesses.
