This article focuses on a specific scenario: the in-app 1-on-1 consultation feature that enables users to engage in direct voice or video conversations with experts, such as astrology professionals, teachers, tutors, or potential dating partners. We will examine the critical indicators in this scenario and explore strategies to enhance the overall quality of the app infrastructure and boost revenue gains with the ZEGOCLOUD solution.
Accurate measurement and monitoring of key operational indicators are vital for maximizing revenue from mobile applications.
Mobile apps need to precisely track and analyze critical operational metrics such as download counts, active daily users, average revenue per user, and retention rates. These metrics offer valuable insights into performance and areas for improvement. By monitoring these indicators over time, businesses can evaluate the effectiveness of new features, upgrades, or marketing initiatives in achieving revenue targets.
Operational Indicators for 1-on-1 Consultation
To increase the app’s revenue and thus build a long-lasting successful app, app owners must focus on the most significant operational indicator: Customer Lifetime Value (CLV).
Customer Lifetime Value (CLV) measures an app’s total revenue from a single user throughout their relationship. The value is determined using the formula below:
CLV = Average Transaction Size x Number of Transactions x Retention Period
Let’s consider a SaaS subscription as an example. Suppose the average customer spends $18 monthly on a social app, and customers typically subscribe for three years with automatic monthly payments.
By applying the CLV formula, we can determine the CLV for this scenario:
CLV = $18 (average sale) x 12 (annual purchases) x 3 (years) = $648
Hence, to effectively increase the platform’s revenue, it is important to improve the repurchase rate, as it directly influences the CLV. While the new transaction value and customer lifespan typically remain consistent and average, enhancing the repurchase rate is critical to driving revenue growth.
What Factors Affect the Repurchase Rate?
The repurchase transaction value is affected by two critical factors.
- Connection Rate – the Key Factor
In a 1-on-1 consultation scenario, the connection rate plays a crucial role. Typically, the consultant awaits the user to book a session or join a live stream. The platform initiates the charging process when both parties successfully connect in audio and video, commencing their conversation. However, if, for any reason, the two parties fail to connect simultaneously, the platform cannot initiate the charging process.
The connection rate measures the effectiveness of this relationship. It is determined by the ratio of successful connections to the total number of connection attempts, as shown by the following equation:
Connection rate = (number of successful 1-on-1 connections / total number of 1-on-1 call attempts) x 100%
The connection rate is directly influenced by the speed at which calls are responded to.
Intuitively, the call response speed directly affects the connection rate:
- If a user can see the consultant’s video within 1.5 seconds after initiating the call, the connection rate usually exceeds 95%.
- If the video loading speed exceeds 5 seconds, the connection rate typically drops to around 70% or even lower.
A higher connection rate generally gives users a positive experience of receiving prompt support. As a result, their level of satisfaction is elevated, leading to a higher probability of them using the app again. On the other hand, a lower connection rate, which may be caused by heavy traffic or insufficient consultants, can frustrate users and reduce the chances of them making repeat purchases.
- Abnormal Exit Rate – An Additional Consideration
During a 1-on-1 call, there are common reasons for its conclusion, such as the completion of the consultation or the depletion of prepaid fees. However, certain abnormal factors, like network interruptions, can cause calls to end unexpectedly.
To assess these instances, we use the abnormal exit rate, which quantifies the ratio of abnormal call terminations to the total number of calls:
Abnormal exit rate = (number of abnormal call terminations / total number of calls) x 100%
The Impact of Indicators on Repurchase Rate
The influence of connection and abnormal exit rates on the repurchase rate, which ultimately determines the customer’s lifetime value, is evident and significant.
When users encounter difficulty connecting with a counselor, tutor, astrologist, or therapist through the app, they swipe away and search for another person before the call connects. This repeated frustration may lead them to abandon the app altogether. Consequently, a low connection rate can create a perception of unreliability or ineffectiveness, decreasing repurchase rates.
Therefore, optimizing video loading speed is of paramount importance. By reducing the loading time from 5 seconds to a swift 1.5 seconds, the connection rate improves significantly, reaching 95%. This substantial enhancement in the connection rate directly correlates with a noticeable increase in the repurchase rate, as observed by ZEGOCLOUD’s experience with its clients.
The abnormal exit rate follows a similar pattern. Users can feel confused or misled when a call unexpectedly ends, potentially assuming they have been charged incorrectly. Similarly, consultants may interpret such abrupt session terminations as a sign of user dissatisfaction. A high abnormal exit rate indicates reliability and stability issues with the app, reducing user satisfaction and diminishing chances of their return. Conversely, a lower abnormal exit rate signifies smoother and more reliable app performance, encouraging users to return.
In summary, the connection and abnormal exit rates represent critical factors in gauging user satisfaction with the counseling app. A high connection and low abnormal exit rates are strong indicators of user trust and their increased likelihood of continued usage or repurchase.
How ZEGOCLOUD Enhances Connection Rate
To improve connection rate, most RTC vendors typically employ a sequential approach, which involves the following steps:
- Joining the channel
- Setting users’ roles
- Pushing and pulling the stream
However, this sequential process can result in prolonged waiting periods for users, especially if joining the channel takes significant time. In contrast, ZEGOCLOUD takes a different approach by enhancing instant video loading through a parallel call process:
- When a user initiates a call, the SDK simultaneously logs the room and pushes the stream.
- The called party accepts the call, and the stream is pulled.
- As a result, the video becomes visible as quickly as possible, irrespective of the room login process.
ZEGOCLOUD has successfully implemented this state-of-the-art and personalized instant video loading feature, which enables businesses to reduce their first frame loading time and improve their 2-second connection rate. Across Europe, America, and Southeast Asia, this solution has proven effective in 95% of cases.
How ZEGOCLOUD Optimizes Abnormal Exit Rate
False disconnections frequently arise when customers utilize signaling services offered by third-party vendors or self-developed solutions. As a result, the real-time audio and video communication remains intact. Still, the signaling service erroneously reports a disconnection, leading the business to assume that the call has ended abruptly mistakenly.
To address this issue, ZEGOCLOUD can offer tailored recommendations to customers, primarily by leveraging ZEGOCLOUD’s SDK + backend to provide streamlined media status. By collaborating closely with customers, ZEGOCLOUD can accurately determine the presence of false disconnections. Furthermore, ZEGOCLOUD recommends utilizing QUIC to replace the original TCP heartbeat, as it offers enhanced reliability and performance in maintaining seamless connections.
Conclusion
By leveraging ZEGOCLOUD’s innovative solutions, businesses can significantly boost key performance indicators to maximize revenue from 1-on-1 consultation apps. Optimizing connection rates through instant video loading and eliminating false disconnections ensures a seamless user experience and results in higher customer satisfaction and lifetime value, driving greater commercial success.
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