Customer engagement is key to your brand’s long-term success, but engagement on its own isn’t enough. Without the ability to turn that engagement into an ongoing revenue stream, there’s no way to build or maintain a sustainable business.
Finding ways to translate an active, engaged customer base on mobile, the web, and other digital platforms takes work. A lot of companies try to monetize their digital audience using one-size-fits-all marketing tactics like blast messaging—but that runs the risk of alienating your users, making it harder to reach monetization goals and potentially encouraging push opt-outs, email unsubscribes, and even app uninstalls.
To avoid that, brands use the customer data at their disposal to power the kinds of nuanced, thoughtful segmentation that supports individually targeted, responsive experiences for their customers.
What does that look like? Well, let’s learn from Dots, a company that used smart segmentation to significantly boost their monetization efforts.
Using Smart Segmentation To Enhance Monetization
Dots is a New York-based gaming company that delivers fun experiences through beautifully designed games—all of their dot-based games deploy minimalist versions of different art styles and provide users with a smart, elegant experience that's both fun and visually attractive. TechCrunch said that their first puzzle game Dots: A Game of Connecting was “the most beautiful mobile game we’ve ever seen.”
The games are free to play, but Dots primarily earns revenue by offering players in-app purchases that allow users to play longer, use boosts to help beat levels, and customize their experiences. This means that finding ways to encourage their users to make purchases is a key focus of their player engagement efforts.
To effectively nudge players to make purchases, Dots utilized the power of data-driven segmentation strategy. By tracking information on the levels completed and previous conversions associated with each player, they were able to individually target promotional offers and adjust the content of particular promo packs to fit the player receiving it.
They also deep linked directly from targeted in-app messages to the relevant purchase page, making it simpler for users to complete their transaction, and used conversion and purchase event tracking to monitor successful transactions across a range of different currencies, supporting more accurate future segmentation
Dots’ decision to use deep linking made it possible to significantly reduce the risk that purchases were being abandoned because of confusing pathways. Tapping a message and finding yourself dumped on an app’s main page with no idea how to find the sale you were offered makes for a bad user experience—and makes it a lot less likely that a purchase is actually completed.
Dot’s Results: Increase in Total Revenue and LTV
By using segmentation effectively in concert with deep linking and purchase event tracking, Dots was able to increase the likelihood that the players receiving promotional messages were actually interested in making a purchase. This provided both a better overall user experience for the players, and some exciting results for the Dots team as they saw a 25% boost in average LTV among all users and a 33% increase in the app’s total revenue.
What Marketers Can Learn From Dots
Thoughtful segmentation can yield major returns. By tracking key information and using it for precise targeting, Dots saw an immediate impact on their bottom line. And because they used conversion and purchase event tracking to keep a close eye on their campaign performance, they gained powerful insight into how their approach impacted individual users and the likelihood they engaged with outreach. Paying attention to metrics like this can do a lot to improve campaigns over time as your team learns more about your audience’s unique preferences and habits.
Ultimately, having all your customer data stored in comprehensive user profiles helps marketers more accurately understand the motivations of their audience members and makes it easier to target promotions in ways that speak to people receiving them. Plus, when users feel understood by a brand they interact with frequently, they’re more likely to convert and continue engaging over the long run.