There is a proverb that those who are forewarned are also forearmed. Basing on analysis you can detect your mistakes and in the future, avoid them. This phrase is true for app makers too. Speaking about app development, it’s obvious that almost everything is based on analytics. But if an amount of downloads and ratings were the only metrics, i wouldn’t write this article.
In fact, count of downloads does not represent the whole entity of app success. There are two reasons to perform deeper analysis. First of all, a user can download an app but uninstall it after the first launch, so download will be counted but an actual usage of application won’t take place. The other reason comes when a user downloads an app multiple times but only the first is counted by an app store.
So it's plenty arguably for other metrics to be born. And that’s what we are talking about for today: key mobile marketing metrics.
How people engage with an app
These metrics are the most influential speaking about your app’s success.
The core metric in this topic is stickiness. It can be easily calculated by dividing amount of your Daily Active Users (DAU) to amount of Monthly Active Users(MAU). In isolation from one another, these metrics don’t represent the whole situation because the audience is mutable so one user can’t imagine his life without your app but another one use it once a month.
So how stickiness works? For example, your DAU/MAU ratio is 10%. It means that an average user engages with your application 3 times a month (3/30*100%=10%). Based on this metric you can plan your future marketing strategy.
Retention rate is also a core metric that analyzes how users engage with your application. This measure reflects how frequently people return to app. Retention rate for a given period (usually it’s week, two weeks or month) can be calculated by dividing an amount of active users in the end of given period to an amount of installations at the beginning of the period.
There are a lot of lesser metrics that measure user engagement in defferent ways. Let’s have a quick look at them:
- Interval between sessions - how often do users launch an app
- Average session length - how much time does a user usually spend in your app
- Conversion rates for a feature X - percent of users who turn to X feature of your app
Metrics of revenue
Maybe we've come the most interesting part, haven’t we? There is no need to say that tracking revenue is an indispensable constituent. The three key measures you should deal with are ARPU, ROMI and LTV. Although, there are a lot of other metrics but the basis comes down to those three ones.
Average Revenue per User. It’s a really prosaic measure that shows revenue your average active user gives to you. It can be easily calculated by dividing total revenue for a given period to an amount of users within that period.
ARPU=revenue/# of users
Return on Marketing Investment is a basic metric to measure marketing strategy effectiveness. It helps to estimate marketing expenses, trace channels of customers income and other useful things. To calculate it you should subtract costs of a marketing activity from the total revenue for the period of this activity and then divide the diff to costs again.
Lifetime Value is one of the most important metric in e-commerce. This acronym means the revenue of working with a single customer for the whole period of engagement (his “life”). To recognize LTV, you need to calculate the difference of total revenue from a concrete customer and Cost to Acquire a Customer (CAC).
Сustomer experience metrics
Not so obvious but none the less really important. First of all because they show not just a mere clients behavior but uncover critical problems. Among them there are following metrics:
- first response time
- problem resolution time
- customer satisfaction or love ratio
First response time as well as problem resolution time are important indicators for a user. Once meeting an unpleasant experience user would think of possible alternatives of your service. Surveys shows that reasonable time for clients support answer awaiting is about 3 minutes and up to 2 days for email. The fastest client's problem is solved the higher his satisfaction, logical, isn't it? Because this way customers feel company's devotion to its audience.
Customer satisfaction or love ratio is the most evident way to trace overall users experience. It allows to receive a constant feedback that requires minimal efforts. The formula of Love Ratio is very simple. You need to divide an amount of users that said “yes” to the total amount of respondents. For example, your app send push-notifications to 1253 users and 732 of them said they love it, so we have:
LR=”yes” respondents/total respondents*100%=732/1253*100%=58%
Love Ratio can be also used to trace progress comparing several surveys.
Actually, there are tons of other metrics that also matter. And it's better rather to know and use them than not, since today's cost of mobile marketing is rather high. Thus, it's possible to save money by looking over keymobile marketing metrics. Measures mentioned above can definitely play the part in your app analysis. From now on, you can easily optimize your marketing strategy working with revenue/costs correlation or increase customers’ love and allegiance.
Thunderrise Dev Team know a word or two on key mobile marketing metrics, so if you want to prioritize downloads of your mobile app we can offer appropriate services to track the metrics you need, analyse and draw fair efficient conclusions to improve your app current market station. Please contact as for further colaboration!