Working daily with a large number of merchants building web services, games and apps allows us to see what strategies different companies use to grow their revenue. We have previously written about localization, finding the right distribution channels and dynamic pricing which help merchants acquire more users in emerging markets and get these users to pay for content.
While such activities are necessary, they require a long-term effort and there is no immediate impact. In parallel, it makes sense to look at actions which bring a quicker impact in revenue - setting up and running sales campaigns.
6 billion people on the planet have a mobile phone which means a large majority of your user base can make payments using mobile operator billing. Our data shows that the average payment conversion of merchants using Fortumo is around 37%. This means the hardest part for merchants is getting the users to actually reach the payment window. Looking at your existing payment data and setting up a successful campaign helps overcome this challenge.
Here is what a monthly campaign with mobile operator billing can look like:
The payment volume in case of this customer is steadily growing after each campaign as new paying users are introduced to payments through attractive offerings. For them, the same recurring campaign has been increasing payment volumes for over a year now. So how to achieve such results for yourself?
When planning a campaign, the first step should be to decide what your goal is. Have you just launched mobile payments and want to introduce the new payment solution to the users? Do you want to activate users who have been gone for a while or have not purchased anything? Have a large number of users failed to pay with a credit card who could be offered purchases using mobile operator billing instead? Each of these target groups require different messaging: blanket approaches rarely work.
Secondly, online marketing activities can be measured and analyzed down to the very smallest details. Looking at existing information about your users gives good insight on how to set up the campaign. Fortumo provides big data about payments to merchants either through our Reporting API or in a downloadable .csv document from the Fortumo Dashboard. This information can be used to answer questions like:
- Which countries are underperforming or overperforming for you - where would the campaign have the biggest impact?
- When are your users online and spending the most - when to run the campaign?
- What kind of content is most popular - do you want to increase the sale of these specific products or boost the popularity of some other offering?
- Which pricing to use - what is the average transaction size that users are currently paying?
- Is there a large number of users who have not made a payment in a while - would it make sense to reach out to them to invite them back to make purchases?
Sometimes we see that merchants try to go for the easy solution and run one campaign in all 80 different markets that we cover. However, payment data shows that people in different regions behave differently: while an average payment from India is 1 USD for Android apps, in the UK the transaction size is around 6 USD.
If you have figured out a target audience and strategy for your campaign, it’s time to update the payment solution as well. Fortumo’s Dashboard allows you to seamlessly change values and pricing in real time as our web and in-app purchasing flows automatically displays the new pricing once it has been entered. Fortumo also has a built in volume discount feature available which gives a free amount of credits or items for users who make bigger payments.
When running a campaign for the first time, our recommendation is not display it to all users at once. Running A/B tests of campaigns against your regular setup helps verify whether the campaign is actually working or not. A simple, easy to use A/B split tool for those that have development resources available can be found here.
Even if the pricing strategy and timing of your campaign is perfect, there is not much use if the users are not aware of your proposition. We have seen merchants who set payments up properly, but forget to make the campaign highly visible to the user-base. Dropping a notification in the user’s inbox, adding a campaign banner on your front page or sending out a newsletter inviting them to participate is something which should be included in each campaign. These approaches can also be A/B tested to see what kind of outreach works best with your audience.
Once the campaign is over, it’s time to once again look at the data:
- How many users reacted to the campaign offering?
- Which version of the A/B test was more successful?
- Was the pricing right or did a lot of users drop off at the payment window?
- Which countries had the biggest payment conversion compared to your user base?
- What type of content sold most, what type of content underperformed?
Overnight success stories are rare but looking at past information and making improvements over time will eventually lead to results as indicated on the chart above. If you’re interested in expanding your payment coverage through carrier billing, please fill out the form below and we will get in touch with you: