Measuring Success: The Most Important App Metrics
After developing a mobile application, it's important to keep an eye on how well it's doing, what needs improvements and how users feel about the app overall. In the recent past, measuring an app's success meant reviewing ratings or counting the number of downloads/sales. With new technology on the rise, there are also new techniques to measure a mobile app’s success.
Average Revenue Per User, or APRU, measures the amount of money that each active user produces. This number can be found by dividing the total revenue generated in a given time frame, by the total number of active users in the same time frame. The result shows about how much revenue each user is producing for the app. APRU can then be used to help find other metrics, like CPI and CPLU.
Cost Per Loyal User (CPLU) can be found by dividing the ad spend, by the number of new loyal users in response to the ads. This number gives entrepreneurs the chance to create a marketing budget. The APRU should be greater than the CPLU, so the business is making a profit. This means that the revenue being generated from the users is more than the cost per loyal user, so there is adequate room in the budget for ad spend
CPI stands for Cost Per Install. This number represents what it costs the developer each time the app's digital ad is clicked and the application is installed. The brand is only charged if the app is actually installed. The CPI can be found by dividing the the amount spent on the ad, by the number of new app installs that were driven by that ad.
It is important to realize how customers are engaging with the app. Engagement is not a metric in itself, but the different types of engagement can be. The following are some types of engagement that can be measured:
- How long a customer remains in the app per session
- How frequently customers open the app
- How many customers opt in for alerts or notifications
- How many customers opt out for alerts or notifications
- Conversion rates in the app
All of these types of engagement can help developers understand how successful their apps are, and what they may need to change.
The Love Ratio of an app helps to measure users' sentiment toward the app. This can be measured with a simple one-survey, in-app question: "Do you love our app?". The customer can answer "Yes" or "No," or they can chose to ignore the survey completely. To find the Love Ratio, divide the number of users who answered "Yes," by the number of users who were asked to answer the survey. Those who answered “No,” or who dismissed the message, do not need to be factored into the equation.
The Retention Rate is the measurement of how many users continue to use the app after specified periods of time. This metric really shows how many active users you have and are able to keep for an extended amount of time. To find the Retention Rate, divide the number of retained users at the end of the time period, by the number of users who installed the app when the time period started
Knowing which metrics to measure is an important part of developing a mobile app, and can help lead to a more successful business overall.