Many app developers will face challenges when measuring the success of an app. Countless apps are released on a daily basis and many are not tracked correctly. It is here that their failures become indispensable. App developers need to ensure that the campaign is targeting the correct audiences as well as track behaviors of the users from the start to end. Here are essential tips on Mobile App Performance metrics to use to ensure your app is successful.
To begin with, performance metrics are the parameters which provide you with information about the experiences and actions of your users’ with your service or products. You can then make a decision to carry on with the strategy or you can improve and regulate it. This will affect the long-term success of the app. Here are the main Mobile Application Performance Metrics from https://path.net to consider:
1. Acquisition
Acquisition is a reference to the user numbers that have downloaded and installed the app, through the organic searches, paid campaigns or WOM. You are also able to track the money you have already spent to acquire users and what they do in the app using this metric. This is also a metric which will show a more efficient method to reach out to potential audiences, as you are offered with information that is useful about the channel that the user traffic is coming from. You are also able to test all the viable channels frequently during the paid campaign of the app, offering you with a way to measure the metric in a more effective manner.
2. Use Of The App
It is vital that you know about navigation flow in your app, as this provides you with information with what screen users are visiting and what screen kept them engaged for the longest. For example, if this is a gaming-app, this is a metric which lets you know what levels are easier and which are more difficult. You are able to view navigation flow in each of the screens to evaluate whether the users following arranged processes or not.
3. Churn
Churn is defined as a measure of the levels of loss over a given time frame. This can relate to dollars, subscribers, customers along with other factors. In order to calculate churn, divide the amount of lost customers over a month by the overall total amount of customers in the previous month. You can also calculate dollars and subscribers in this way.
4. Retention
The retention rates is an indication of the % of the users that visit the app after an initial download. It is very important to evaluate any flaws in the marketing efforts you have used to find out the viability of your app within the market. You are able to track retention rates in the way of using an analytic tool, followed by calculating it using a number of methods. The easier and more common method is to look over the amount of users that return to the app over a day, and then divide this number by the amount of users that installed the app on Day 0.
5. Engagement
Do you know how users interact with the app? Or how to determine whether the users are actually active? In general, the definition is not classified as standard. It varies from one marketer to the next, and is rather defined in a context of an individual app associated with the marketing strategy used. One of these definitions may include a user that has opened your app 5 times or more. The actions of the users such as spending in-app, happen to be common indicators associated with engagement.
6. The Number Of Users
The amount of people that use the mobile app happens to be crucial to allow for a way to calculate retention rates of your app. This is the metric that will give you information when one user downloads the app more than once. Analyzing the amount of the users over a given time frame allows you to calculate the retention rate of your app. The amount of people that are using the app varies dramatically to the amount of installations.
7. Session Length And Intervals
The session intervals and length is used for measuring the behavior of users in the app. Session length is an indication of the session time in each entering. If you need information on how frequently one user opens the app, you are able to track interval metrics that will give you an indication of the time frame between each session. These are vital metrics that will help you to establish how valuable the app is to users and the interest levels of the users in the app.
8. CAC- Customer Acquisition Cost
CAC which stands for Customer Acquisition Cost indicates the price you are paying to acquire new customers. To find out where a user is coming from into the app as well as their behavior once they start using the app, the CAC metric comes in handy. This metric can also help you to understand if the marketing campaign happens to be profitable.
9. ARPU- Average Revenue Per User
ARPU is an average revenue for each user or a value associated with one user to the app business over a specific month. This metric allows for a way to calculate the revenue you are generating from every individual user. If your ARPU remains higher that your CAC, you are generating a profit. Add revenue that the app is generating every month followed by dividing this figure by the amount of active-users in order to calculate ARPU.
10. LTV- Life Time Value
This is probably the most important portion associated with App Performance Metrics. LTV is the main revenue metric, that is a representation on the Financial Value of an app in association to the worth of each user over her or his lifetime or forecasted values of the acquired users. To calculate LTV, use ARPU and Customer Churn. The Churn rate is the amount of users that have left. The LTV formula will involve LTV = ARPU X (1/Churn).
