If you have created a mobile app, it is now available on Google Play and the App Store, and you are actively advertising it, you should now concentrate on monitoring the most crucial KPIs for mobile app performance.
You see, the majority of marketers give application performance measurements top attention. As marketers use mobile analytics to enhance mobile app use and performance, keeping track of your app’s performance is crucial.
However, if you don’t measure KPIs, you won’t be able to decide on your mobile apps effectively, which might result in app failure. And to be really honest, all that is necessary is the inspection of critical data for mobile applications; nobody wants a meltdown.
This article aims to provide valuable insights into the most important mobile app KPIs worth reviewing.
1. App Downloads
According to MobileAppDaily, since everything starts with the initial download, downloads are among the foundational mobile app marketing KPIs!
Most other performance indicators for mobile apps are based on the app downloads measure, which is a reliable sign of adulation. But keep in mind that just because an app has been downloaded doesn’t indicate it will be successful; you also need strong engagement metrics, which we’ll discuss shortly.
2. Retention Rate
The amount of people that keep using your app right after installation is your retention rate. In essence, your unique consumer worth increases with your retention rate.
Different milestones will have different meanings and ramifications depending on your sector, but assessing retention as a whole may still provide insightful data about the sustainability of your company.
Once you have a basic understanding of it, you may attempt to boost your retention rate. Consider A/B testing your app, updating your content to better meet user requests, and paying close attention to the onboarding process once someone downloads your app.
3. Average Session Duration
Users spend how long on your app each session. It indicates user engagement and app value.
Session duration might reveal user engagement and opportunities for development. Your app may be underdelivering if consumers spend little time in it.
4. Daily Active User
DAU represents daily users. DAU may help you gauge your app’s development and popularity by telling whether people open it daily. Gaming apps and social networking apps define “active users” differently.
5. Costs Per Action
Costs per action, or CPA, calculates the expense of a user engaging in an action that generates conversions, such as a purchase or a registration, among many other things. Let’s say your $10,000 advertising effort was successful and generated 500 conversions.
So, the CPA — one of the KPIs for measuring the success of mobile apps—would be:
$20 000/$500 = $40
CPA gives an important commercial perspective that might help you assess the success of your campaign. The bulk of marketers, however, prioritize traffic and revenue growth above cost efficiency.
Your returns may be quickly increased by cutting expenditures and decreasing the cost per acquisition.
6. A Particular Action’s Conversion Rate
Smartinsights takes conversion rates very seriously in mobile app marketing — the conversion rates, which measure how quickly you reach your goals, are among the most useful mobile marketing KPIs.
Although the term “conversion” refers to any desired activity, this is calculated by dividing the total number of visits by the number of conversions. Conversion rates come in two flavors: paid and organic.
The percentage of unpaid discoveries that result in conversions is known as the organic conversion rate. The organic rate covers all these activities: organic search, relevant app store listings, word-of-mouth promotion, and influencer marketing. The conversion is organic if one or more of them result in someone finding your app.
A conversion rate that was produced via paid discovery is referred to as a paid conversion rate. Everything from a website banner advertisement to a sponsored social media post may be considered a paid marketing effort.
7. Churn Rates
The number of users that discontinue using or dropping an app during a certain time frame is shown by the churn rate. Compared to the retention rate, it is the reverse. A mobile app’s health may be determined by its decreased churn rate. Here is a formula to determine the churn rate:
The churn rate is calculated as follows: 1 – (number of active users/number of installations per month).
8. Customer Lifetime Values
CLV — the most significant KPI for assessing performance and gross revenue (lifetime value). While downloads, impressions, and session lengths are highly important metrics, it is simple to get preoccupied with them.
All of these interactions, however, are useless if your consumers don’t subscribe, convert, or spend money on the app. You may maximize your marketing efforts by determining and assessing your CTV, which will allow you to establish reasonable CPA, CPI, and other mobile advertising quotas and limits.
9. Costs Per Install
When a consumer installs your app after seeing an advertisement for it, your cost per install tells you what price you’re paying to bring in new users. In the system, tracking purchased installations takes precedence over organic ones. CPI enables you to assess the viability and sustainability of your sponsored ads.
CPI is determined as follows:
CPI is equal to the sum of all installed ads.
10. Returns Of Investment
ROI compares an investment’s earnings to its costs. Mobile app creation, maintenance, and promotion are your investments.
ROI is calculated by subtracting the investment’s cost from its profit and dividing it by the cost again. Negative numbers result from returns less than spent. Your application investments are lucrative if your ROI is good.
Measuring ROI is among the most apparent methods to show that your app is becoming more profitable over time, which is critical for planning and showing stakeholders your progress.
ROI is determined by dividing the gain from an investment by the investment’s cost.
Final Thoughts
Understand your starting point to achieve your sales objectives. Mobile apps introduce you to new clients, but you still need to analyze the data.
Monitoring your mobile app’s performance KPIs like those above may provide you with a complete view of how your mobile app fits into your plan.
Caroline is doing her graduation in IT from the University of South California but keens to work as a freelance blogger. She loves to write on the latest information about IoT, technology, and business. She has innovative ideas and shares her experience with her readers.