How to calculate conversion cost?

Ever wondered how much it really costs to turn a casual browser into a committed app user? Understanding conversion costs in App Store Optimization (ASO) can be your secret weapon in optimizing not just for visibility, but for profitability too.

What is Conversion Cost?

Conversion cost in ASO refers to the total cost associated with converting a store visitor into a user who downloads your app. This isn’t just about money spent on ads; it encapsulates everything from the time spent on optimizing your app’s page to the price of any promotional activities.

The Basic Formula for Conversion Cost

Here’s how you can calculate it:

Conversion Cost = Total Cost for ASO / Number of Conversions (Downloads)

Breaking Down the Formula:

  • Total Cost for ASO: This includes costs like app store optimization tools free or paid, marketing expenses, time spent on apple app store keyword research, and any other ASO-related expenses.
  • Number of Conversions: Simply, the number of app downloads directly attributed to your ASO efforts.

Why Calculate Conversion Cost?

Knowing your conversion cost helps you:

  • Evaluate ASO Strategies: See which parts of your ASO strategy are cost-effective.
  • Allocate Budget: Decide where to invest more or where to cut costs.
  • Improve ROI: By reducing unnecessary expenses, you increase your return on investment.

Components of ASO Costs

Keyword Optimization

Diving into app store keywords research might require investment in tools or services to find the best keywords that lead to higher conversion rates.

Creative Elements

Your app icon, screenshots, and preview videos aren’t just art; they’re investments. Good design can significantly lower your conversion cost by attracting more users for less.

Paid Campaigns

Using apple search ads optimization involves direct costs. These ads can boost visibility, but at a price, which needs to be factored into your conversion cost.

Time and Labor

Time spent by your team on ASO is a cost. Whether it’s updating listings or analyzing aso traffic, this labor has a value that contributes to your total ASO expenditure.

How to Minimize Conversion Cost

Optimize for Organic Traffic

Focus on app store optimization company techniques that boost organic reach. Higher organic downloads mean lower costs per conversion.

Use Free Tools

There are numerous app store optimization tools free out there. Utilize them before investing in paid versions.

Efficiency in Keyword Use

Effective apple app store keyword research ensures you’re not wasting money on irrelevant or overly competitive keywords.

Regular A/B Testing

Continuously test different aspects of your app’s store page. Small tweaks can lead to big changes in conversion rates, reducing cost per acquisition.

Real-World Example

Imagine you spent $1000 on ASO this month, including tools, ads, and labor. If this effort led to 500 downloads, your conversion cost would be:

$1000 / 500 = $2 per download

Conclusion

Calculating the conversion cost in ASO isn’t just number-crunching; it’s about understanding the value behind each download. By optimizing each element of your ASO strategy, you can reduce this cost, making your app not only visible but also a viable business venture. Remember, ASO isn’t a one-time task but a continuous process of refinement and optimization.