After publishing your mobile app, you're likely to focus on three key objectives:
- Acquiring more users
- Boosting user engagement and retention
- Driving conversions and revenue growth
However, achieving these goals requires a deep understanding of how your app is performing. This is where mobile app metrics come in – essential indicators that help you measure the success of your app and inform data-driven decisions.
What are Mobile App Metrics?
Mobile app metrics provide valuable insights into various aspects of your app's performance, including retention, engagement, conversion, and revenue generation potential. By tracking these metrics, you can identify areas for improvement and optimize your app to drive better results.
Why Track Mobile App Metrics?
Understanding how your app is performing is crucial to achieving your objectives. For instance, 80-90% of apps are used only once before being deleted – a statistic that highlights the importance of tracking retention metrics. Similarly, understanding conversion rates and revenue generation potential can help you optimize your app's performance.
The Importance of Understanding App Metrics
Before diving into individual metrics, it's essential to understand which ones matter most for your business. For instance, 90-second sessions may be acceptable for an investment app but not for a music streaming app. By focusing on the right metrics, you can ensure that your efforts are driving meaningful growth and ROI.
Segmenting App Metrics
To help you navigate the vast landscape of mobile app metrics, we've grouped them into four categories:
Acquisition Metrics
Cost Per Install (CPI) / Cost of Acquiring a Customer (CAC)
The cost per install (CPI) is an essential metric that measures the average money spent to acquire each user. By tracking CPI, you can ensure that your app is generating revenue and not losing money on every download.
How to calculate CPI: Total Marketing Cost / Total Acquired Users
For example, if you spent Rs 1,00,000 in a month and acquired 100 new installs, your CPI would be Rs 1,000.
Customer Lifetime Value (CLTV)
The customer lifetime value (CLTV) measures the total value that an average consumer can generate for your app until they uninstall it or cease to be a customer. By tracking CLTV, you can ensure that your app is generating revenue and not losing money on every download.
How to calculate CLTV: Average Value of Conversion X Average Number of Conversions over a Time period X Average Customer Life Time
For example, if an average user spends Rs 500 on your platform, makes 3 purchases in a year, and stays for 2 years with your company, the CLTV would be Rs 3,000.
Engagement Metrics
Average Revenue Per User (ARPU) & Average Revenue Per Paying User (ARPPU)
The average revenue per user (ARPU) measures the total revenue generated by each user. By tracking ARPU, you can identify areas for improvement and optimize your app's performance to drive better results.
How to calculate ARPU: Total Revenue / Total Users
For example, if your app generates Rs 10,000 in revenue from 1,000 users, your ARPU would be Rs 10.
Stickiness & Time Spent on App
The stickiness and time spent on app metrics measure user engagement and retention. By tracking these metrics, you can identify areas for improvement and optimize your app's performance to drive better results.
How to calculate Stickiness: Total Users / Total Sessions
For example, if 500 users spend an average of 10 minutes per session on your app, the stickiness would be 50%.
Retention Rate
The retention rate measures the percentage of users who return to use your app after a certain period. By tracking this metric, you can identify areas for improvement and optimize your app's performance to drive better results.
How to calculate Retention Rate: Total Users at T+1 / Total Users at Time T
For example, if 80% of users return to use your app after one week, the retention rate would be 80%.
And many more...
By tracking these essential mobile app metrics, you can elevate your app's user experience and drive better results. Remember to focus on the right metrics for your business and optimize your app accordingly.