If you own a mobile app then you will certainly wonder what key metrics are important to track to understand the performance of your mobile app. But how can you tell if your numbers have a great or terrible performance?
Mobile app analytics does not have to be difficult. We will discuss 6(+1) important mobile app metrics that you need to track in order to measure adoption, retention and growth. Let’s get started.
Acquisition data can be used to optimize marketing spending. It tells you where your users come from and over which channel you reach them. We recommend our customers to use attributions for every channel they use to generate downloads: messenger, email, webpage, qrcode.
To gain a better understanding of the impact of your marketing campaigns, you should check downloads at least once a week, better on a daily base. To maximize user growth, you can track where your users come from and where they are going and fine tune your advertising campaigns.
Downloads: Number of new downloads within a timeframe (daily/weekly or monthly)
Download Attribution: Where your new users are coming from.
A simple way is to create different download links for attribution. For example, for our customer Mozari3 we’re tracking the download attributions with redirect links for different channels.
It may surprise you to see how many people download your app, but never open it. Trivial factors, like UI typos or lengthy user registrations can all have an negative impact on activations. This is the first point that you need to examine.
Activity Rate: Percentage downloads that launched the app.
Metric Range 1: An activation rate of 85% or higher is considered good. Any lower activation rate will require a deeper analysis in order to identify and fix the problem.
Metric Range 2: In the case of most mobile apps that are growing, the ratio between first app launches and total app launches in a 30-day period is somewhere between 5% to 15%.
Retention equals revenue. Your app is more valuable if you retain users for longer periods of time. The problem is that the average user has 60 to 90 apps on their phone. However, only 10% of these apps are used daily. How can you make your app stand out amongst the other apps that are competing for their attention and time? First you have to identify critical elements of you customer journey by tracking user retention metrics and identify where people are dropping off.
Day 3 and Day 7 retention after the first app launch
Metric Range: 0-100%.
Fact: 24% of apps are removed or not used again after one launch.
Weekly and monthly retention retention
Tells you to track how long users remains active in your app, and determine which in-app behaviors have an effect on retention.
The actual retention rate depends on your industry, but you can expect quite a drop over time. As average over all industries you can expect an “organic” Day 3 retention rate of 13% and a Day 7 retention rate 10%.
How often do users return to your app? And how much time do they spend there? Not all Apps are meant to be used every day. You will need to define what “active user” is for your app. It could be launching the app, logging into, or performing a key action. These metrics will help you to understand the effectiveness of your campaigns and, more importantly, the quality your app user experience.
Daily (DAU) and Monthly Active Users (MAU). These are the active app users daily, monthly respectively.
Average Session Duration & Frequency: How frequently users launch your app and how long does an average session last
A way to increase the number of DAU and MAU is to engage users with push notifications. Our customer Morawa uses push notifications for informing customers about new books and events that are related to books. For Morawa a push notification doubles the number of DAUs the day the push notification is sent. But there is also a positive effect of the push notification on the number of DAUs the following two days. This means, that not all users are opening push notifications right away.
5. Drop offs
It is important to track whether users engage in key activities within your app, and how often. There are several flows you have to define for your app. For example, in ecommerce apps probaly the most important flow of users is to launch the app, look at products and purchase some of them. Whilte specific details vary, you should identify at least 1 to 3 key steps within your mobile app you want your users take. You can then use simple funnels for tracking these flows over time and identifying drop-off points to pinpoint the areas that will have the most impact on growth. For example, with our customer call a BOX a key action is to order boxes after a user registers in the app. We noticed that more than 50% of this key action is taking place at day 1. Put differently: users that subscribe are eager to use the service right away. Then there is a long tail with users returning at a later point and using the app for ordering boxes.
Users who have performed a key Action / Users who could have taken the action
Metric Range: 0-100%
Time that users require for a key action after activation. You can create distributions to look at the data to identify when users are do
Are you allowing push notifications to be turned off by your users? What percentage of your mobile app users do have email addresses? To engage users and good customer experiences, it is crucial to monitor reachability by channel over time and compare those trends with your daily apps installs.
Click Through Rates: Percentage users who tap on push notifications and in-app notifications as well as email links
Opt In Rate: Percentage users who opt in to receive notifications and allow location access
Metric Range: 0-100%
Opt-in rates for push notifications depend on the industry and operating system. You can see values between 49% and 95% on Android (medium 81%) and 29% and 73% (medium 51%) on iOS.
6(+1). CAC to Conversion
If you want to measure your app’s growth more accurately, there is one additional KPI that you should track. This is the CAC-to-conversion rate. In a nutshell, CAC-to conversion measures the cost of acquiring paying customers. You may not get a full picture of your growth if you only measure mobile app conversion rates. You can improve your ROI by lowering the CAC-to-conversion rate. You can also continue upselling, cross-selling, and encouraging users to renew their subscriptions or make repeat purchases after they have installed your app.
Conversion Cost: Total cost of user acquisition/number of conversions
CAC-to-Conversion: Cost of acquiring a paying customer
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These essential metrics will help you to see how your marketing ROI and growth is. They will help you pinpoint the areas where you can improve user experience so that to make your app users like to use the app every day.