Just like with many other ventures, the success of an app relies very largely on the competence of the business behind that application, and there are a lot of things to take into consideration to ensure your business is doing the best it can for your app. Key performance indicators, or KPIs are great ways to understand just how well your business is doing, and anything that can help you to measure your own success is incredibly important if you plan to grow as a business.
With app marketing, there are certain KPIs that stand out more than others, and whilst they may be quite obvious, it’s sometimes easy to forget these things – this article will serve as a reminder of the best KPIs for app marketing, and a lesson as to why they are so useful.
Regional App Downloads
App downloads are incredibly important, but regional downloads give you a little bit extra overall knowledge. By listing regional app downloads as one of your main KPIs, you’ll be able to see how well your app user base is performing, whilst also getting an idea of what regions are proving to be successful for your application.
Average User Rating
Getting app downloads is only the first step, and app marketing ends up turning into a continuous battle to keep customers going back to your application. The user ratings within the app store are a great way to gage what people think about your application, and the reviews here will be a pretty good indication to why your active app user base is dropping or growing.
Working towards a better average user rating will ensure that app users enjoy using your app, and it will also help to bring in more downloads, too.
App Store Rank
App store ranking is almost the whole reason for app store optimization, and with a decent ranking, new daily downloads will start to come in at a very impressive rate. It’s always important to push for a better app store rank – there are algorithms in place to make sure that the most downloaded and favored apps appear higher in the rankings, and an improved app store ranking is a great way to show that you’re pushing ahead with downloads, user reviews, and decent app store optimization.
Customer Lifetime Value
In app marketing, a user’s value is treated differently to many other types of software. It’s very common that apps will be made available for free or at a very low price, and because of this, app marketers need to push towards improving a customer’s value over a long period of time. LTV can help to show how well you’re doing with bringing in revenue, and it’s also a good indicator of how well your in-app advertisements or IAPs are doing.
ARPU – Average Revenue per User
App revenue is generated by the paid app’s price and/or in-app purchases. And not every app user is created equally and there also huge differences between the app acquisition sources when it come the ARPU numbers.
There are several numbers about app retention rates; Appboy says 65% of the users stop using the app after 3 month of the first install. Other sources even say 80 to 90 percent of all downloaded apps are used once and then eventually deleted by users. So a 7 days or 30 days retention rate needs to be monitored closely.
The graphic by Flurry shows there are huge difference in retention rates between app categories.
DAU / MAU – Active Users
Monthly average users” and daily average users are the two metrics that evaluate the usage rate of an app. These are basically the active users of the app which every app developer needs to know very well.
Once you’ve set out a good few solid KPIs, your business will have a clearer picture of what to reach for, and this can make understanding the mobile industry a whole lot easier. The KPIs listed in this article are a great starting point.