LeBoutique Success Story: How to Make Your App Profitable

Results: App revenue grew by 42.61% in the first month of the advertising campaign. Three months passed and we turned cost-effective.

The Client

The shopping club LeBoutique launched their mobile app in early 2015, later than the other e-commerce leaders in fashion such as modnaKasta and Lamoda.ua. The client reached out to the Netpeak agency with the aim of achieving a positive return on investment for mobile app advertising.

LeBoutique works according to the fashion-sale model, where fashionable branded clothes are sold at large discounts.

The Challenge

Considering the specifics of the business, we created an action plan with the following goals:

1. Optimize the current advertising campaign.
2. Increase the number of active users for the Android app.
3. Keep the app's cost per install (CPI) below $0.52.

Netpeak's Mobile team worked on the project with the client's team. Apart from the client's goals, we also established an intermediate goal to reduce the uninstall rate (i.e., the number of uninstalls by users). This metric is an important indicator when shifting focus from the maximum number of installations at the lowest price to measuring mobile app revenue.

The Solution

1. We analyzed the market and current advertising campaigns to understand LeBoutique's place in the niche of e-commerce projects.
2. We prepared and coordinated a marketing strategy to clearly define the project's features, goals, and tangible ways to achieve them.
3. Our team carefully prepared for the launch of advertising campaigns by implementing these steps:

• Accessed all necessary advertising accounts.
• Set up ad performance tracking, including the AppsFlyer analytics system to track events within the app and revenue from completed orders.
• Developed and coordinated creative content with the client.
• Configured and launched advertising campaigns.
• Regularly analyzed the results and improved ads.

We utilized the following tools:

The Results

1. We managed to increase the share of installations from paid channels. Not only that, the cost per installation was consistently decreasing.

Downloads from Google Ads cost on average 23.4% less than those from Facebook and Instagram.

2. The Netpeak team successfully reduced the uninstall rate:

3. In the first month of advertising campaigns, revenue from the app grew by 42.61%. Over the next three months, not only did we break even, we also reached profitability.

Comparing advertising sources, 69.4% of app users came from Google Ads while 30.6% of installations came from Facebook and Instagram ads:

Installations

4. The ratio of money spent on advertising campaigns and income from paid channels:

Read more:

• OLX (by Naspers) Success Story: Increase of Impressions to 74% with ASO Services.
• Robokana Success Story: Increase in Impressions and Installs with Thoughtful ASO. 
• Raters Success Story: Growth in Installs by 100%.