ROI Calculation for Mobile Apps

ROI CALCULATION FOR MOBILE APPS • A business mobile can have a double impact on your business • Improves customer acquisition and workplace efficiency • Here, we consider only the customer interaction part of the ROI calculation similarly; you can assess the value created by the app in the work place as well. Things to consider Customer Retention Rate Asset User Management Acquirement Sales & Evaluating Customer Marketing Mobile Evaluating Workplace Efficiency Authority Interaction Field Lead Service Achievement Supply Chain SUM UP THE COST INVOLVED IN APP DEVELOPMENT INTEGRATION SUPPORT HARDWARE IMPLEMENTATION Give the app a measurable KEY PERFORMANCE INDICATOR (KPI) USER ACQUIREMENT 20000 LEAD ACQUISITION 4000 100 20 Cost per new mobile customer for Mobile TCO is $20000 with 4000 users is $5 $5 TOC/users = cost per user Leads due to the direct result of mobile campaign 20% Compare the cost with that of lead acquired from other Total leads/mobile leads = acquisition rate MOBILE AUTHORITY 100 RETENTION RATE 10 5000 Does your mobile app influ- ence customers? 20% 1000 Of the 100 new leads if 10 customers used your app Then mobile influence rate is 10% What is the increase rate in Total leads/app users = influence rate repeat customers? 20% If 5000 customers are retained and 1000 downloaded the app, then your retention rate is 20% Retained customers/customers that downloaded app = retention rate Weigh Customer Interaction With the above measurable KPI answer the following: Assume your app life span as five years What is the value of your app? Calculate the Net Present Value NPV of the app benefits and costs using the formula Compare it with other marketing efforts Check if it outweighs the investment Business benefits * 5 - opportunity cost of capital = NPV benefits One time app development costs * 5 - opportunity cost of capital = NPV costs NPV benefits/NPV costs = ROI of your app Sources https://www.gartner.com/doc/2296923/estimate-roi-customerfacing -mobile-apps Innopp! Innovative People http://www.apptive.com/uploads/resources/Apptive-ROI%20of%20a% 20Mobile%20App.pdf