Product Manager, Reteno
September 21, 2022
Competent analytics provide information for making decisions about the next steps in application development. But how do you understand whether the product is interesting for your target audience? How can you tell if it is growing and developing? To do this, you need to monitor a number of KPI metrics (key performance indicators) and make decisions on further actions based on the data obtained. Let's take a look at examples of metrics that are important for app promotion and business development.
General KPIs for mobile apps are overall app usage metrics that show the app’s popularity regardless of business objectives. You can use them to see how many people downloaded, installed, deleted your app, etc.
The easiest and most obvious way to track popularity. This KPI shows how many times users have downloaded your app, but there are other important factors.
If users have downloaded an app, it doesn't mean they have completed the installation. This metric helps to track apps actually installed on users' mobile devices. As for uninstalls, there can be many reasons, but you need to analyze if this process coincided with any changes in the app (updates, new advertising methods, etc.), especially if the uninstalls started in a previously stable cluster of users.
The decision to register in the mobile app and therefore provide personal information is another sign of user loyalty.
If you offer to update the app to a premium or paid version, control not only the number of updates, but also the time it took for the user to decide whether to pay for additional features.
Equally important KPIs are customer engagement app metrics. They show how users interact with the mobile app.
When evaluating session length, you'll find out how much time users spend in the app and whether session length is related to a malfunction. Session depth tracks the number of user interactions with the app. For example, going from browsing to ordering items means more session depth than simply checking in.
Customer retention rate shows how many users return to the mobile app. Different experts calculate the rate differently, depending on the information they want to get. The simplest and most common option is to count the percentage of users who return to the app after some time, e.g. a month.
The opposite of the retention rate is the churn rate. It shows the percentage of clients who stop using the application. Sales managers monitor the churn rate and retention rate regularly, but especially after updates are released. If the ratios change dramatically for the worse after the updates, it means that there may be a mistake or bug somewhere, and it has to be found quickly to avoid losing the entire audience.
An application can be considered successful if it is used regularly. Daily Active Users (DAU) and Monthly Active Users (MAU) clearly reflect the real popularity of the software. If your audience regularly spends time in your app, it means you've made a really cool and useful product. Modern analytics systems automatically detect this indicator. Your task is to interpret it and see if the value is alright. By dividing the DAU by the MAU, you can calculate the so-called user stickiness.
These KPIs are not directly about profits, but they do give an indication of how users are comfortable interacting with your app and how exactly they do it.
The load time of a mobile app. The lower this metric, the more convenient it is for the user to interact with the application.
This is a fairly simple app KPI that tracks which mobile devices your target audience is using. Depending on whether it's Android or iOS, tablets, or smartphones, you can fine-tune your targeting.
Statistics on crashes in the app. If an app is constantly crashing or full of bugs, users definitely won't want to use it. When you're dealing with software, this is an indicator that you need to keep a close eye on.
These are financial application KPIs that measure the cost of acquiring a new customer, such as the cost of an advertising campaign and the revenue that this cost generates.
This KPI for mobile apps is also known as current LTV (lifetime value). For example, you can determine the average revenue per user since the product launch. To calculate it, you need to divide the total revenue by the total number of clients.
Here everything is quite simple. Purchases refer to the number of purchases made by users through the app. This mobile app KPI is the final part of the sales funnel, and it is the metric that business owners are chasing the most.
This type of metrics for mobile apps is needed to determine the effectiveness of advertising campaigns. Not all marketing channels are equally effective. It largely depends on the field of activity and the correct setting of advertising. For example, some applications get 90% of new users from contextual advertising, while the other only gets 20% from this channel. And how do you know which marketing channels are effective and which are not? This should be determined by analysts, but for a quick assessment it is sufficient to calculate the Cost per acquisition (CPA) using this formula:
Every application has a different conversion rate, but whatever industry you’re in, you always need to look at the first purchase, not just the installation. Push notifications, abandoned cart reminder emails, strategically placed discount offers or sale notifications can help increase sales when conversion rates are low.
This figure can be calculated to clarify the return on investment for marketing in general or a specific advertising campaign (for example, from one sales channel). If the ROI is more than 100%, then the investment is justified, and you’ve made a profit. Otherwise, you should reconsider your strategy and either refuse further investments or make some changes to remedy the situation.
Setting up analytics to monitor mobile app metrics is an important stage in product development. Without information on user behavior, the effectiveness of advertising campaigns, and so on, it is impossible to make objective decisions on further actions regarding your business growth. You will be working "blindly" and have no idea what you are doing.
Think about competent analytics in the early stages of development. A week is not enough for customization and testing. It's a voluminous process, but it's worth the expense, so be sure to give it working time and get everything ready for the app launch. Better yet, contact professionals who can help you set up all the metrics tracking and calculation tools you need and end up with a complete picture of your app's effectiveness.
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