Mobile App Marketing: KPIs & Metrics for Maximizing Your App Revenue
Many mobile app marketing agencies strive to get their applications installed. This, however, is just the beginning of the challenging journey to make your mobile application successful. So how does one gauge the success of an application?
To measure the performance of an application you need important mobile app marketing KPIs and metrics. This app marketing guide will discuss the key performance indicators and metrics that can help you analyze the mobile app performance in order to maximize your app revenue.
The following are some of the things mobile app kpis and metrics can assist you to determine.
- User needs and pain points
- User Engagement
- User retention patterns
- The functionality of your app
Top Mobile App KPIs to Measure the Performance:
Mobile app KPIs are important in gauging success of your app marketing campaign and the performance of your app. There are various metrics that you can consider and as such, it is important to make sure you use only the top KPIs. This way you get the right picture of the performance of your app.
The following are some of the top mobile app KPIs to measure the performance of your app.
Checking the number of downloads is a straightforward yet important way to track the performance of your app. Downloads are the key stage in adopting an app. This is because all the other stages come after downloading the app. It is therefore critical to Increase your app downloads.
App Open Rate (AOR)
This is the rate of sessions of your app users. The higher the app open rate the more engaged users are to your app. This is also called stickiness. The sticky users are preferred since they are more valuable to your app.
Number of New Users
This mobile app KPI tells you if you are having new users or not An increase in the number of new users suggests that your customer base is growing. You can also use the number of users to tell how successful a marketing campaign is. For instance, an increase in the number of users after a marketing campaign suggests that the campaign is successful.
Organic Conversion Rate
This refers to the rate of conversion that comes from unpaid means. Some of the unpaid channels are word of mouth and search engines.
This refers to the rate of conversion through paid channels. These can be social media ads or display ads. This app marketing KPI will tell you if your marketing campaign is increasing your mobile app revenue or not
Tracking uninstalls is as critical as tracking the number of downloads and installs. Bulk installations are always a sign that you have done something wrong. It could be that you have added an add that users don’t like or a feature that is interfering with user engagement. In case you notice to realize any uninstallations, try to figure out what the reason is and correct it immediately.
This refers to the number of times users have recommended your app to others. Shares can happen under various contexts including social media platforms and other websites. The more shares your app gets mean that users find your app valuable to them. This app marketing KPI also shows that your brand name is growing.
Most users check on apps ratings and reviews before making a decision whether to download an app or not. This, therefore, makes ratings to be one of the most important mobile app KPIs. So when checking for the performance of your mobile app, ensure you check the ratings of users. Positive ratings and reviews show that users are contented with your application.
There are also essential metrics that can help you maximize your mobile app revenue. app marketing guide has classified the metrics into three categories for easy analysis. These categories include;
- User Information metrics
- User engagement metrics
- Revenue metrics
1. User Information Metrics
These app marketing KPIs track the user’s data which is essential in creating higher user engagement. Understanding the behavior of your users enable you to optimize your app to meet their needs. They also assist in examining conversions and usage of each user. The higher the conversion the more revenue your mobile app generates.
The following are some of the user information metrics to monitor when measuring app performance.
Acquiring new customers to download your app requires you to understand the behavior of the current users You need to study how these users got access to your app. This can be through word of mouth, paid advertisements, organic search or in-app referrals. Since customers are drawn to your app in different ways, it is essential to understand the best way to reach your target customers. This way you can market your app aggressively on these fronts to maximize your mobile app revenue.
Users download applications on various devices. Some use smartphones while others use tablets. It is essential to understand who the main users of your app are, and what devices they use Device metrics will give you more information about the devices most of your customers. This enables you to optimize your mobile app performance to meet the needs of each device hence increasing the potential of mobile app revenue.
User location metrics are important app marketing KPIs since they tell you where the users of your app are situated. Understanding the location of your users can help you understand why there are more users in one location than the other. Identifying such issues can help you optimize your app to broaden your target audience.
Screenflow or User Journey Mapping
This involves tracking the actions on the screen of the user. It also includes the number of times a user visited your app and where they went after leaving the screen. User journey mapping is important in telling you the interactions a user had with your app. It can tell you the barriers to conversion, abandonment areas, and the pain points.
Having a glimpse of the user interaction allows you to tackle the barriers that users experience. You can also personalize user engagement by giving users the features they like the most This way you will increase your app’s revenue generation. Also, understanding what customers use your app for and the features they use the most creates a benchmark for the development decisions.
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2. User Engagement Metrics
User engagement metrics are very important app KPIs. They tell you when, how, where and the ways in which customers engage with your app. These metrics enable you to understand the challenges users face when using your app as well as their satisfaction levels.
Discussed below are some of the user engagement KPIs you can track to measure your app performance.
Session duration is the period of time a user spends in your app. This is measured from the time when a user opens your app to the time they exit. The session duration varies from one app to another depending on what an app is used for. This metric shows how engaging your application is.
The more engaging the content of your app is, the longer the session duration. You can take advantage of user segmentation in this metric to understand which users are spending the most time in your app. This way you can work on increasing such users hence improving your application user engagement.
Session time is an essential app marketing KPI used in most media applications and games. This is because tracking session length in such apps can help highlight areas that require improvement. There are times when session duration may increase due to factors like the crashing of the app and its loading time. Proper analysis is therefore required to correct such gaps. This boosts the revenue potential of your app.
Session interval is the period between a user’s first session with an app and their next. Short session intervals suggest that the user is using your app more frequently. This, therefore, shows that users are finding your app to be valuable and hence return to use it. Examining this metric can help you understand why users return to your app and show you areas of value. Besides, they assist in optimizing your app to increase the number of active app users.
Retention & Engagement
It is common for new users to download an app and never return to use it This is usually because of bad user experience with the app. A bad experience with an app drives users away hence adversely affecting the retention rate of an app. Retention is among the biggest challenges facing most mobile apps. Most users usually forsake an application after their initial download if they don’t find it useful. Retention is, therefore, a fundamental metric in measuring performance.
This metric enables you to establish the key features app users want. Providing users with what they need increases user engagement. This also ensures that you create a pool of loyal satisfied users. This highly-engaged user base increases the retention rate of your app. A high retention rate is usually a sign of a quality app and leads to an increase in conversion rates.
3. Revenue Metrics
One of the main reasons for creating an app is to of course make money from it Most mobile app marketers, however, start by focusing on the other app marketing KPIs before moving to revenue metrics. This is because revenue generation is the ultimate goal for most developers. Revenue metrics will tell you how profitable your app is Besides, they show you how the app is generating revenue.
Below are some of the important revenue metrics to measure the performance of your app.
Cost per Acquisition (CPA)
Cost per acquisition refers to the amount you spend to acquire a new active paying customer or user. This may include the cost of advertising on different platforms, technology costs like hosting, fees for designing and developing your app as well as the amount you spend hiring content writers. All these costs are essential in determining the cost of acquiring each user. They also help you to prioritize your marketing. Acquisition cost is obtained as shown below.
- Total Cost of Campaign / Number of Acquisitions = Cost per Acquisition
This refers to the ratio of transactions that take place in the app versus the transactions that are abandoned. Some of the reasons that make users abandon transactions include poor app performance, extended load time, bad user experience just to name a few. The abandonment rate will help you detect the gaps that cause users to abandon your application. This way you can work on those areas hence improve your app performance.
Lifetime Value (LTV)
Lifetime value (LTV) is the amount of revenue you get from a user during their lifetime. This metric is important in determining the value of each user segment. It also enables you to make decisions on how much you should spend to acquire the different users. In calculating the lifetime value, you should consider the churn rate, the customer’s referral value and the abandonment rate for your application.
To ensure you make profits from your mobile app, the LTV should always be higher than the customer acquisition cost. Lifetime also helps you in predicting the revenue your app will bring in the future. You can extend the lifetime value of your users by meeting their needs. The best way to do this is by regularly checking the feedback from users. These can help you to address their needs. Timely response to user’s needs through a responsive customer support also makes your app attractive to users.
There are many important app marketing KPIs and metrics that you can track to maximize your app revenue. You can choose the right KPI and metrics to use on your app. This way you can measure the performance at each stage of development and optimize it to suit your users needs hence maximizing your app revenue.
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How do you measure KPI for apps?
Measuring KPIs for apps involves a systematic approach. Start by identifying your app’s objectives, such as user acquisition, engagement, or revenue. Then, select relevant metrics that align with these objectives, such as downloads, active users, or in-app purchases. Set specific targets for each metric and regularly track and analyze the data. This will help you assess performance, identify areas for improvement, and make data-driven decisions to optimize your app’s success.
What are the 5 main KPIs?
The five main KPIs for apps can vary depending on your specific goals and industry. However, some common KPIs include:
- User Acquisition: Measure the number of new users acquired over a specific period, tracking metrics like downloads, installs, or sign-ups.
- User Engagement: Assess user activity and interaction with your app, including metrics like session duration, screen views, or active users.
- Retention Rate: Calculate the percentage of users who continue to use your app over time, indicating user loyalty and satisfaction.
- Revenue Generation: Monitor metrics related to monetization, such as average revenue per user (ARPU), in-app purchases, or ad revenue.
- Churn Rate: Measure the rate at which users stop using your app, indicating user dissatisfaction or lack of engagement.
What is the difference between metrics and KPI?
Metrics and KPIs are closely related but differ in their level of significance and strategic importance. Metrics are quantitative measurements that provide data about specific aspects of your app’s performance, such as downloads, session duration, or conversion rates. They help you understand various operational aspects.
On the other hand, Key Performance Indicators (KPIs) are specific metrics that are strategically chosen to reflect the critical success factors of your app. KPIs are aligned with your business goals and provide insight into the overall performance and progress towards achieving those goals. They act as a barometer for evaluating success and guiding decision-making.
What is an example of a metric and KPI?
An example of a metric for an app could be the number of daily active users (DAU). This metric indicates how many users engage with your app on a daily basis and provides insights into user engagement.
In contrast, a Key Performance Indicator (KPI) for the same app could be the user retention rate. This KPI would measure the percentage of users who continue using the app over a specific period, such as a month or a quarter. A high retention rate indicates satisfied and loyal users, contributing to the long-term success of the app.