Keeping track of the top mobile app KPIs will help you understand your app’s overall performance and development. It can also help you make the necessary changes to improve its success.
The key to successful apps is attracting and retaining new users, as well as providing them with a valuable experience that keeps them coming back for more.
Top Mobile App KPIs
App Downloads
The number of app downloads a mobile app receives is one of the key performance metrics that will help you track your app’s revenue. Depending on your app, you can expect to get anywhere from a few hundred thousand to ten million downloads per month in 2023.
The amount of time it takes an app to load from the initial tap to being ready to use is another important metric. This can affect your user experience as well as customer retention.
Retention rate is one of the most important mobile app KPIs that indicate how many users stay with your app and interact with it on a regular basis. This is essential for ensuring that your app is valuable to active users and positively impacts your business’s revenue.
This mobile app KPI can be measured using a variety of channels, including Google Play Store and iOS App Store. This will help you understand how your users discovered your app and what they do once they’re on it. It can also reveal the demographics and behavior of your user base and inform future mobile app marketing campaigns.
Retention Rate
Retention is a valuable KPI for a mobile app, and it can help you see where your product stands on the retention curve. It’s also a key indicator of whether or not your product adds real value to customers and their lives.
Retaining customers helps your company earn more revenue, especially if you’re a subscription-based business like software-as-a-service (SaaS) or gyms. Research shows that it costs at least five times more to acquire a new customer than it does to retain an existing one.
To improve your retention rate, you should consider personalizing your app to suit each user’s needs. This can be done by asking users to fill out information during their onboarding process or by improving the app’s overall user experience with UX improvements. A top mobile app development company in Dubai states that an effective user experience should be a priority for any application. It is essential for providing users with an intuitive and engaging experience, increasing their likelihood of returning to the app.
Churn Rate
The churn rate is the percentage of customers who leave your app. It’s a metric you should track closely because it can tell you how well you’re doing at keeping your users happy.
A high churn rate means that your business is losing significant numbers of customers. It’s important to understand why they’re leaving and where you need to improve your product or service.
Churn rates can be calculated in a variety of ways. For example, you can use a monthly churn rate or a cohort churn rate to calculate how many customers you lost in a certain period of time.
The churn rate is one of the most important metrics for mobile apps to track because it shows how many customers you’re losing in a month, year or even a lifetime. It can also help you determine what changes need to be made to keep your users happy and coming back for more.
Churn rate = 1 – (number of monthly active users/number of monthly installs)
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Life Time Value (LTV)
The lifetime value (LTV) of your app’s users can give you a value estimate of how much revenue they will generate over their lifetime. It is a crucial metric that can help you make the best decisions about monetization and customer retention.
A high LTV is important for maximizing your mobile app’s long-term growth. It allows you to increase your retention rate, which helps drive more ad revenues and in-app purchases.
It also helps you allocate resources more efficiently to customers with higher lifetime value. This means that you can invest more money in new acquisition and maintenance strategies.
One of the most common methods for estimating LTV is to multiply an app’s average revenue per daily active user (ARPDAU) by its users’ average lifespan. This is a rough estimate that isn’t always accurate, however.
Cost Per Acquisition (CPA)
The cost per acquisition (CPA) is a metric that shows how much it costs a company to gain one new customer. It can be used alongside other metrics, such as average customer lifetime value or return on investment, to make better business decisions.
CPA is a crucial metric to track because it tells you how effective your marketing strategies are at acquiring new customers. It also helps you determine which marketing channels are most profitable and which aren’t.
Unlike cost per mile (CPM), which pays for impressions, CPA only pays when the campaign achieves a specific conversion goal, such as ad clicks, app downloads, newsletter signups, form submissions, or page views. It’s important to optimize CPA by experimenting with copy, headlines, and CTA text to increase conversion rates.
Ideally, your cost-per-acquisition ratio should be three times lower than your customer lifetime value (CLV). If your CPA is higher than this, it may indicate that you’re overspending to acquire customers and are missing out on valuable opportunities to generate revenue.
Return on Investment (ROI)
Mobile App ROI is an important metric that should be tracked by all businesses that have a mobile app. It helps determine whether the money spent on marketing and app development has made a positive return.
Another key metric that app owners should track is cost per user acquisition (CPA). This measure shows how much they have spent to get new users onboarded.
A number of marketing strategies can reduce this cost, such as offering a free download or a discount for high-value customers. This helps reduce the overall cost to acquire users and boosts your app’s ROI.
Another metric that mobile app marketers can use is average revenue per user (ARPU). It measures how much your app has earned over time for every user. It is determined by dividing total revenue over a period of time by the number of users that accessed your app.
ROI is calculated by; (Gain from Investment – Cost of Investment) / Cost of Investment
App Store Rating
If you’re launching an app, your app store rating and reviews will be one of the most important metrics to track. These are a direct reflection of your users’ experience with your app, and they can be a major determinant of your success in the store.
In the iOS and Google Play stores, ratings are calculated based on all the feedback your prospects have submitted within a certain time period. This makes it hard to properly track changes in your ratings, especially if you’re introducing new features or monetization models or changing your user onboarding process.
This means that it’s essential to make sure your feedback strategy is optimized and your app is constantly improving to maximize its impact on app store rankings. This is where an automated review management solution can help.
Daily Active Users
Daily active users (DAU) are a key performance indicator that can be used to gauge user engagement on an app. It’s a good KPI to use alongside monthly active users and cohort analysis.
A DAU can be calculated by counting the unique visitors that have logged in or entered your app on any given day. Most analytics tools can provide this information, so it’s easy to get a sense of how many daily active users your app has.
But before you can determine your DAU, you need to define what activity qualifies as a user. For example, does a user need to create an account, log in, or click a button?
Then, you need to figure out how often those users take that action. This can be tricky since each company will have a different definition of what an action is. But it’s important to keep that definition consistent in order to calculate accurate data.
App Store Ranking
App stores rank apps based on search results derived from user queries. They use complex algorithms to sort and display apps in accordance with their relevance to a search query.
The app store ranking of your mobile app is one of the most important KPIs to track and measure. If you can achieve a high app store ranking, your app will have better exposure and attract more users.
Apple uses app store ranking to prioritize apps whose features it thinks users will want. It also considers the number of positive reviews your app has compared to other apps.
The most effective way to boost your app store ranking is to create a glitch-free app and encourage users to leave positive ratings and reviews for your app. These will help your app to move up the rankings in both Google Play and Apple Store.