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Key Performance Indicators For Mobile App Success

App Development

May 2019
2656 Views 4 Minute Read
mobile app development
Analyzing mobile audience behavior is needed to more effectively target an advertising campaign and primarily to adjust the application for its audience. Mobile analytics helps to get the maximum profit from the application in any constantly changing conditions and this can be carried out by an app development company.
Proper analytics should cover all stages of the user's conversion path, application promotion and understand all important aspects of user interaction with the application and consider the effectiveness of advertising campaigns.
Basic indicators in mobile marketing

Conversion of registrations from installations
It is obvious that not all users who have installed the application become its active users. Some users do not register with the application after it starts, so the number of registrations is usually less than the number of installations. A good conversion rate of 60-80% of registrations depends on the number of installations and it is highly dependent on the offer of the application. The number of installations may be more than registrations, due to the fact that some users are already registered in the application and just want to install it on another device. The re-install rate can be tracked by authorization through social networks.
Active audience
This is the number of active users who log into your application for a certain period. It is customary to single out a daily (DAU – daily active users), weekly (WAU – weekly active users) and monthly (MAU – monthly active users) audience.
Session duration
The session duration shows the average amount of time each user spends on the application in one session and allows you to segment your audience by the interaction time with your application.
It is important to know the average revenue generated by users. For this, the app development company can use the ARPU indicator. If the business model of the application works according to the free-to-play scheme, then ARPU is considered only for the category of paying users - ARPPU (average revenue per paying user).
It is important to know how much one installation costs you. For this, there is a special metric - eCPI (effective cost per install). To calculate it, it is necessary to divide the CPI by the viral coefficient. Virality is a way to spread information about the game on the Internet and social networks from player to player. If the application was developed by a top app development company and has well-developed mechanisms for virality, then the cost of attracting new users is reduced.
Lifetime value (LTV)
LTV reflects the income from each user for the entire time that he uses the application. The main purpose of calculating LTV is to optimize marketing costs, i.e. cost management, based on knowledge of which channels customers come from, how much marketing communications cost through these channels and the ROMI (return on marketing investment) value for each channel.
It is possible to increase LTV and reduce eCPI using more precise targeting, make test samples and select the most profitable audience based on them. Encouraging users to spend more in the application through notifications or application mechanics also reduces eCPI.
User retention
user retention
User retention is a vital task for any application, and for this, there is a special metric - the Retention Rate. It shows the percentage of users who remained in the application after a certain period. The first week is considered to be the Retention Rate by day, then by week. A good rate of Retention Rate is 15-20%, on average it is from 10% and more.
Interest metrics make it possible to calculate the audience and segment it by loyalty, to plan advertising activities by customer involvement segments in the application.
Analyzing the indicators of engagement, you can see the number of users who came at the invitation of other users. For the accuracy of this indicator, you can make adjustments for Churn Rate and virality.
Tools for increasing virality in applications are usually developed individually, taking into account the themes and ideas of your application. The app development company handling your project can help with these tools.
User loyalty
One of the main indicators in assessing the audience is loyalty. There are several metrics that describe loyalty.
- Churn Rate - shows the percentage of users you lose on a monthly basis. It represents the ratio of users who have stopped from being in the MAU.
- Returning users metrics (Return Rate) - the ratio of returned users to the monthly audience. Loyalty metrics should not be much different, while the Churn Rate is always greater than the Return Rate.
- LT (lifetime) - the lifetime of the user. It is calculated by the formula: LT = 1 / Churn Rate.
For example, with a monthly audience of 10,000, one thousand users left, and 500 returned. Churn Rate is 0.1. The life of the user is ten months. 500 users leave each month from you, with whom you can work already in retargeting technology or with tools for capturing a similar audience. Returning users costs less than attracting new ones. With these metrics, you can cut costs.
This is a set of basic metrics that a mobile app development company can use when promoting mobile app development services. By analyzing the performance of mobile analytics, you can track the effectiveness of advertising and optimization of the application. Competent analysis of these indicators allows you to find problem areas in the mechanics of the application and advertising campaign. The mobile app development company must ensure that these metrics can easily be gotten. This would reduce the cost to obtain these metrics.
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Harnil Oza is the CEO & Founder of Hyperlink InfoSystem. With a passion for technology and an immaculate drive for entrepreneurship, Harnil has propelled Hyperlink InfoSystem to become a global pioneer in the world of innovative IT solutions. His exceptional leadership has inspired a multiverse of tech enthusiasts and also enabled thriving business expansion. His vision has helped the company achieve widespread respect for its remarkable track record of delivering beautifully constructed mobile apps, websites, and other products using every emerging technology. Outside his duties at Hyperlink InfoSystem, Harnil has earned a reputation for his conceptual leadership and initiatives in the tech industry. He is driven to impart expertise and insights to the forthcoming cohort of tech innovators. Harnil continues to champion growth, quality, and client satisfaction by fostering innovation and collaboration.

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