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How Much Does It Cost to Get Someone to Use Your App? Understanding Acquisition Cost

How Much Does It Cost to Get Someone to Use Your App? Understanding Acquisition Cost

Business owners are often very curious about how much it costs to have a new app built. It’s important to understand that development represents only one part of an app’s cost. In order for an app to be successful, you need a strategy to attract users. Marketing and promotion costs include any advertising you do to get people to sign up for the new app, as well as costs associated with making your app available for sale or download via third parties.

The term used to describe app user acquisition cost is cost per install, or CPI. CPI is calculated by dividing the total costs of relevant sales and marketing activity by the number of installs during a given period. For example, if you spend $1000 on Facebook ads promoting your new app and 100 people sign up, you’ve realized a $10 CPI. Obviously, lower CPI numbers are appealing: the typical cost for successful apps on both iOS and Android devices is under $2.

[Tweet “The average app loses 77 percent of its users in the three days after they install it.“]

CPI is not the only relevant metric. Android Authority reports that “the average app loses 77 percent of its users in the three days after they install it”. It’s important for app owners to know what percentage of customers use the app, and of those users, which percentage further the relationship by creating an account or making a purchase. The costs for those customers can be significantly higher. eMarketer puts the cost of an account opening user at $8.21, with the price for a user who makes a purchase a jaw dropping $64.91.

With that in mind, it’s important for business owners to have an efficient plan to capitalize on their app’s appeal. A successful app cannot exist in isolation: it must be an integrated part of your overall marketing mix. Promoting your app on your website, social media, and in store is step one; resourcing your app campaign appropriately with a promotional budget is step two. It’s important to pay attention to metrics to ensure all levels of customer acquisition make sense for your business.

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Creative Director/Senior Designer

Tom DiGrazia

With over a decade and a half of professional design experience, Tom brings his knowledge of design principles and focus on user experience to every aspect of his contribution to TTG. Paying special attention to each client’s brand, personalized needs and individual interests, he strives to create compelling concepts utilizing intuitive and highly-refined design solutions. In addition to traditional and digital design work and oversight at TTG, Tom also boasts a wide portfolio of web development projects with the company, allowing him to stretch his CSS and HTML skills across multiple platforms and disciplines. He feels that being a designer in the digital landscape of websites, eCommerce solutions, email marketing platforms and social media, it is important to understand the code that goes into these areas as it assists his ability to tailor designs specifically targeted to achieve the best end result and further builds understanding and communication with backend development teams.

In his off hours, Tom is an avid pop culture enthusiast, staying up to date on the latest shows, films, comics and games. He can also typically be found taking part in a whole host of artistic activities that help him further stretch his creative legs. Regardless of the activity, Tom is always accompanied by his dog, Eli, and his cat, Tib.

Design, Photography, Illustration, Digital Imagery Manipulation, Wesbite Development

Photoshop, Illustrator, InDesign, Lightroom, HTML/CSS, Wordpress


Courtney Dumont

As Senior Marketing Strategist & Analyst at Technology Therapy Group, Courtney is energized by the ability to flex both her left and right brain daily. Courtney discovered her passion for Marketing at Bryant University, where she spearheaded research on students’ perceptions of Social Media Marketing for her Honors Capstone Project. After graduating Bryant in 2012, she joined the Technology Therapy team, where she’s honed her skills in social media, search and social advertising, email marketing, SEO, and more.

Since joining the team, Courtney has created digital marketing strategies and managed campaigns for clients across the country, ranging from plastic surgery centers, to jewelry stores, to construction companies. With a cohesive, cross-channel approach and a focus on data-driven decision making, she has increased their leads by up to 217%. But Courtney doesn’t leave her zeal for social media at the office; she also runs a local foodie Instagram account with her husband to document their meals across Rhode Island and beyond. Check them out: @hoppilyfed.

Marketing Strategy, Data Analysis, Google Ads, Facebook Ads, Social Media

Google Analytics, Google Ads, Facebook Ads, Facebook Creator Studio, Instagram, Klaviyo, Mailchimp, Emma Mail, Google Data Studio, WordPress, YouTube, LinkedIn, Facebook, Microsoft Office