Are users spending five minutes actually finding value through your app, or are they trying to find the page they’re looking for, tapping through pages in a frustrated state? Just because someone is using the app doesn’t mean that they are happy with the experience. This is where mobile app KPIs step in.
There are numerous key performance indicators (KPIs) to help you measure the performance of your mobile app. It’s important to identify which metric is worth tracking for your business and which of them do not affect your bottom line — be it in terms of revenue, conversion or engagement. Take for instance, a weather app where a user spent 90 seconds. This is acceptable but the same can’t be said for a video streaming app, which would mean a user did not even see one complete video.
That said, it can be a daunting task to understand which mobile app KPIs you need to pay attention to. This is what we aim to shed light on in this article.
Mobile app KPIs
They help you accurately evaluate the performance of your app and keep you informed around user retention, engagement, conversion rate and revenue generation. The most useful technical KPIs for mobile apps are load time, crash reports, and device information including screen resolutions and operating systems.
Where can we track them?
Once you have got the hang of the several mobile app KPIs that can be monitored, the next question would be – Where do we go to begin monitoring these metrics? There are plenty of app analytics tools on the market, like Google Analytics, Mixpanel, UserExperior, etc. that offer insights into metrics such as churn rate, daily active user (DAU), monthly active users (MAU), conversion optimization, session length to improve your mobile app performance. To pick the right tool that is well-suited to your business, you can go through our list of highly recommended mobile app analytics tools of 2021.
Important mobile app KPIs to keep a track of
We have categorized the key performance indicators into broad buckets, which will easily help you understand the metrics affecting different aspects of your mobile app.
- Engagement metrics
- Acquisition and revenue metrics
- Performance metrics
Mobile App KPIs for Engagement
How many users open your app on a daily/weekly/monthly basis? We should pick one metric out of Daily Active Users, Weekly Active Users and Monthly Active Users that makes the most sense to your business. It helps to track the frequency of engagement with your app, where the more active your users are, the more potential to generate revenue.
Stickiness refers to the percentage of users who find your product interesting enough and stick around using it for a period of time. The stickiness metric is also evaluated by the number of monthly active users who use your app long enough to become daily active users. Divide DAU by MAU to get an indication of stickiness. The closer DAU is to MAU, the stickier your app is.
- Retention rate
The amount of energy that goes into identifying and acquiring users for your app is massive. Unless you don’t match that level of energy when trying to retain your customers over a period of time, it will not be profitable. Monitoring the number of users that keep coming back to your app is an important measure of the value being derived from the app.
- Churn rate
This metric measures the rate at which users abandon or uninstall your app. Needless to say, keeping this number low is important. Deciphering why your churn rate is going up is difficult. It could be due to a number of factors like no new content, switching to a rival or too many glitches in the app.
Metrics for Acquisition and Revenue
- Average Revenue per User (ARPU)
This metric calculates the average amount of money generated by a user within a time period. The money spent by a user on in-app purchases shows you how much he/she adds to your bottom line. Understanding ARPU can help you understand if you should charge more to meet your monthly revenue targets.
- Customer Lifetime Value (CLTV)
When you evaluate ARPU, it’s easy to calculate how much each user spends on your mobile application. Customer Lifetime Value goes a step further. It is concerned with determining how much revenue can be generated from your average consumer, till the time they stop using your app. CLTV is an indicator to know if you’re spending more to acquire your users, which is not good for your business.
- Customer acquisition cost (CAC)/ Cost per Installation (CPI)
You need to keep a watch over the amount of money that is going into acquiring new users for your application. The aim of CAC is to pinpoint your conversion rates. The cost per installation needs to be lesser than your CLTV, otherwise you are losing money on every download of your app.
Mobile App KPIs for Performance
- Session length
Understanding in-app performance data by analysing each user’s mobile app session length gives context to user behaviors. Specific session KPIs you want to track include:
- Number of sessions generated: The more the better.
- Length of sessions: In most cases, the longer is generally better.
- Interval between sessions: Time between sessions.
- Depth of session: How far users go within the session.
You need to keep a note of when app crashes happen, where they occur, and other relevant data. In-app technical glitches have a big impact on user experience and engagement. A poor user experience will result in shorter session lengths, decreased revenue, uninstallations, and poor app store reviews.
- Screen resolution, devices and operating systems
Knowing the screen resolutions of your users’ devices is especially useful for Android apps. Also, you need to gather data related to what devices and operating systems your target audience uses. It will give you an idea of what tests to run and decrease any issues that may occur.
There are several other metrics for measuring the performance of your mobile app at each phase of its marketing funnel. Some KPIs are quite easy to understand, while others are complex. Reach out to us here to help you pick the most critical KPIs for acquiring new users and improving the performance of your mobile app, overall.