There are a lot of analytics tools and platforms that can help you measure app user behavior and provide you valuable insights about users and how they interact with your apps. However, the information and metrics provided by these tools can become overwhelming. So,it is crucial to know which KPIs and metrics you need to be tracking in order to get results relevant to your business.
Here is a list of some important app metrics and KPIs and examples of what business cases do these metrics matter on that you can track in order to measure the success of your app.
Tracking app downloads and installations is a basic metric that everyone tracks, It’s a good indicator of an app’s popularity. However, this metric will not be able to tell you the real success of your app. Many users may download your app and never use it or may uninstall it after a while.
Keeping that in mind it is still a good practice to have these figures as it will lay the foundation to track other metrics.
You can get a better picture if you use this metric (app downloads) to registrations,signups, and/or app downloads vs engaged users over a period of time.
If your goal is revenue, you can compare total number of downloads versus total revenue. This would give you an average lifetime value of each download. You can apply a similar concept to app users versus app downloads versus app revenue.
App acquisition shows you where all the downloads are coming from. It allows you to see the effectiveness of your marketing campaigns and channels. This will help you invest in the channels that are valuable and cut off those that are not generating any profits. This will ensure you invest your time, money and efforts in the right places.
A good way to look at this metric would be to compare engagement across various acquisition channels, cost of acquisition across various channels and ROI across the different acquisition channels. This can help you direct your budget towards the most profitable channels and reduce wasted spend on least performing channels. However, keep in mind that there could be some channels that may be indirectly impacting the high performing acquisition channels.
For example, a retargeting campaign may not be bringing new revenue or users but it might be impacting the engagement of already acquired users and thus helping you retain those paying users.
It’s not necessary that everyone who downloads your app is an active user. Active users frequently open and engage with your app. It is important to track the level of interest your users have in your app and this metric does just that. It shows you how useful your app is to users.
Google Analytics considers an active user as the one who has opened and interacted with your app within the last 30 days. Active users are segmented as Daily Active Users (DAU) and Monthly Active Users (MAU). DAU measures the number of users who have interacted with your app at least once a day. And MAU measures the number of users who have used your app at least once a month.
The average app session interval or length tells you how much time a user spends interacting with your app in a single session. This helps you find out how engaged your users are and is your app useful to them.
You can evaluate the performance of each screen in your app. This report will give you insights into screen metrics like number of screen views, unique screen views and percentage of exit from a screen.
The stickiness ratio shows how often your users return to the app. In order to calculate stickiness, you just need to divide DAU by MAU and multiply the result by 100 to get a percentage. The higher your percentage the more often your users return to your app. This means the closer your DAU is to your MAU the stickiness of your app is high.
One of the very common techniques to measure user engagement is called cohort analysis. Cohort is a group of users who share a common characteristic. For example, users with the same Acquisition dates belong to the same cohort. This helps you to isolate and examine cohort behaviour.
You can use cohort analysis to see the response of individual cohorts to marketing efforts like emails or notifications. You can also see how the behaviour of users changes from days to months. And you can also organise these users based on shared characteristics.
Based on these reports you can improve retention of your app and create long-term customers.
Events are user interactions with your content that can be measured independently and don’t require a new screen to load. Downloads, ad clicks, video plays can be measured as events. Event reports are customizable and will not include any data until you set it up.
While setting up Events, you can define up to five components or categories for each Event. Then you assign values to these categories and the data will then appear in the Events report. When you organise your Event Tracking well it becomes easier to read and interpret your data.
App retention rate measures how many users you return to your app after a set period of time. People are constantly looking for new apps and engaging with a variety of content daily. Hence, keeping their attention in the midst of all the competition can be challenging.
This metric can be especially useful if you add a new feature or update to your app. It can help you find out how successful these updates were, and did they retain the users.
An app Lifetime value (LTV) helps measure how much value each customer brings to your app.
LTV should always be greater than Cost Per Acquisition (CPA), that shows you how much acquiring new users costs you. If your LTV is not greater than CPA it means you are paying more for your customers. This metric is useful to determine if you are spending money on valuable customers or not.
Every business is different hence you might want to use metrics that are relevant to your business. It is always good to check your business goals before you start tracking metrics. This will help you assess your requirements.
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