App users that are considered “high value” are responsible for an average of 85% of revenue taken by apps, and engagement is more than four times that of a regular user. Some categories take almost all their revenue from high value users: Music and books, for example, takes 99%, and sports takes 90%.
Marketing technology company RadiumOne says it’s essential to recognize these high value users, by focusing on your segment using analytics, and by using key signals that help identify them through app use and behavior.
RadiumOne shows the importance of recognizing high value users
“Marketers should look outside their app for signals,” RadiumOne says in its latest State of Mobile Acquisition report. “To truly get to know your high value users, take in data from the entire ecosystem, including third-party apps and websites, to see how they act ‘out in the wild.’”
As an example, RadiumOne highlights how high value retail app users have 45% more lifestyle-orientated apps on their devices than average retail app users, but 62% fewer social games. They’re also more loyal, often with just one other shopping app installed, rather than the three seen on average users. High value sports app users, on the other hand, have many more sports apps than regular users.
High value app users only make up a small percentage of total users
It’s important to understand how to find high value users, because they make up a small percentage of the overall user base, just 17% on average. RadiumOne breaks it down by category, showing that sports apps have the highest percentage at 28%, while communication has the lowest at 16%. However, it’s also shown that high value communication app users use the app five times more than an average user.