Have a look at 7 most effective app metrics that would allow you to perform better in your space of offering.
No matter what idea or purpose you are looking to build your mobile app for, it’s the performance that decides its success in the end. With businesses facing tough competition from new competitors or from the ever-changing market dynamics in the space, it becomes ever more important for them to keep a track of app’s performance.
This can be effectively done with the help of tools and platforms that are equipped to deliver you with a comprehensive facility to track and trace your app’s performance from different perspectives – called performance metrics.
So, which ones are the most important and pervasive of these and how to go about detecting and measuring them right to get the most out of mobile app development services.
Metric 1: User Engagement
User Engagement metrics reveal how well users are connected with your app. Here, to study it at a large level, we have compared the two top mobile app platforms iOS and Android, and here is a comprehensive result:
If we talk about the market share, then Android is the clear winner with over 86% of pie in its pocket. Apple iOS comes at the second place with around 13 % of share. Though iOS is far behind in the user acquisition, but it is ahead of Android in terms of quality engagement and have a better revenue stream to offer.
The next metric is for is for the yearly downloads. Here’s as expected Android is showing incremental growth trends YoY. And as it seems it will be having this drift roll on at a steady pace for next couple of years to come until it hits the level of incompetency.
The more advanced a region is in terms of development and resources, the more it shows favorable tendencies towards iOS. And this is quite noticeable with the acquisition and growth trends shown by these countries.
Metric 2: The matter of time
The length and interval of time users stay at your app give a valid hint of the app performance. This allows you to know which user stays with you for long and how does it contribute to traffic on your app. The more they stay on and revisit your app the more loyal they are in terms of intent and behavior, and this has a big role to play in your performance dynamics.
Recent researches say that people in the age bracket of 18-24 years in the US are the most active users who use their devices for 3.1 hours on an average daily. However, the aging users spend about 2.3 hours daily and 93.5 hours monthly on different apps.
Another study by Business Insider establishes that the most popular app among millennials is Amazon and about 35% of users put it on the top of list. Here, Gmail and Facebook find the second and third spot respectively.
Metric 3: Average Revenue Per User (ARPU)
This metric aims at measuring the quality of visits and user engagement on your mobile app by calculating revenue generated per user. By knowing the response contributed by each user you can optimize your pricing model and plan to engage users better.
Big brands like Snapchat and Facebook keep ARPU as a base of their marketing and positioning strategy. With this they get to know which geographical area and demographical trait get them the best of results for their efforts. ARPU also reveals details on communication responses and therefore has a great bearing on the way businesses adopt their strategies related to user communication.
So, by measuring ARPU you get to see how your business is functioning against competition and how it is growing to get you more profit – allowing you to have a control on how you manage your ROI per user and make your brand perform better.
Metric 4: The Costs per Install and Loyal User (CPI and CPLU)
These measures stress on the cost of advertisement against the response generated in the form of downloads and conversions. CPI and CPLU are imperative in allowing you to adopt the right marketing strategy. When combined with ARPU, these two reveal some highly imperative numbers that help you reach best of decisions in targeting and approaching audiences and connecting with them optimally.
If we refer to business cases, according to a research conducted in Feb 2017, CPI metric for iOS platform is twice as compared to that of Android. When measured it was found to be $0.86 for iOS whereas it was at$0.44 for Android apps.
So, as you calculate these numbers for your app, you get to know how well you are able to cater to your users and how efficiently you can convert visits into sales. And this goes long in deciding the success of your app.
Metric 5: Retention Rate
Retention rate is nothing but the willingness of your users to open or visit your app again. It is calculated by taking an aggregate of users who have revisited your app against the total number of app users. This can be calculated for different time spans and for different performance criteria and actionable events. Usually experts recommend measuring retention rates across a 90 days period, to get a more dependable result.
If you compare industry-wise results, you will find Travel & Lifestyle segment to lead in user-retention with 23% of rate in its favor. And this is followed by social networking apps standing at a decent rate of 16%.
Another important data on retention reveals that if your user opens up your app for more than 10 times there’s better chance of retaining them and counting them in, as a retained user.
Metric 6: Lifetime Value (LTV)
Also known as Customer Lifetime Value, LTV is one of the most important performance metrics influencing your marketing strategy. It predicts the overall equation a business will share with a customer. For better results more of the marketers and analysts measure it within a depictable timeframe (which is generally around 12 to 24 months).
The easiest way to calculate LTV index is by dividing ARPU by the Churn Rate.So, going with that, as the ARPU for Facebook is $4.75, and the overall churn rate in the segment is of 84%, so the LTV for the brand is equal to $5.65. Similarly, for Twitter it is $1.75/84% = $2.08 and for SnapChat it is $1.06/84% = $1.26.
In all the three cases LTV is lower than CPI and this is a sign of a healthy business.
Metric 7: Customer Acquisition Cost (CAC)
The cost you spend for acquiring a customer is technically called as Customer Acquisition Cost or CAC. It is a correlation between all the spending that goes in to add customers to your business. In case of a mobile app, the money you have to spend in order to make your audiences download your application is the CAC of the product.Here, every business’s goal should be to aim at a low CAC while keeping the LTV high.
Here is the proportional breakage of the methods marketers adopt to attain a low customer acquisition cost:
|42.4%||Cross-promotions through SEO|
|41.9%||Cross-promotions via own apps|
There are more ways businesses adopt to keep CAC at its lowest. Like, they might go with PR campaigns, video ads and other such alternatives. Here, they may use just one or a mix of it while attempting it. It depends on the approach they go with in business, segment they are operating in and the type of userbase they have to cater.
These are some of the most reliable mobile app performance metrics to depend on for performance and referring to and implementing these right, you can assure better results for your app and can create better value for your business.