Welcome to the metrics – Everything you need to know about app marketing KPIs

Welcome to the metrics – Everything you need to know about app marketing KPIs

Cell utility advertising and marketing, identical to the world we reside in, thrives on information. Merely put, it’s the best technique to consider the efficiency of your utility, perceive the areas that want enchancment, and drive your small business.



Cell app metrics are each marketer’s key indicators of success: whether or not acquisition or discovery intel, consumer engagement charges, or lifetime worth and return on advert spend, cell entrepreneurs reside and breathe measurement.

That’s why after publishing your app on the Google Play or App Retailer, the three questions that may occupy the bigger chunk of your mind are:

  1. How do I get extra customers to obtain my app (i.e. consumer acquisition)?
  2. How do I get customers to spend extra time in my app (i.e. stickiness and engagement)?
  3. And the way do I enhance my app’s monetization (by way of in-app buying or in-app promoting)?

These are the million-dollar questions, and no single parameter may give you inch-perfect solutions. The fact is that the majority corporations are scrambling to drive extra high quality customers to their app, or hold those that do – engaged and lively.

However don’t lose coronary heart. Because the app market is increasing exponentially, and competitors over customers’ hearts and wallets has develop into fiercer than ever earlier than, even minor optimization tweaks might have a tangible influence in your app’s success.

So, to get you nicely outfitted for battle, we’re going to cowl 19 of essentially the most very important app metrics that may will let you observe and enhance your acquisition, engagement, retention, conversion, and app efficiency.


What are app metrics and why are entrepreneurs so obsessive about them?

App metrics are the window into the efficiency of your advertising and marketing campaigns, protecting you consistently knowledgeable on essentially the most urgent developments.

That stated, these metrics can’t provide true worth on their very own, and it’s actually their mixed forces that may assist level you in the proper route, and allow you to constantly optimize your app technique.

An awesome instance of the significance of cross-referencing your metrics could be app downloads. Whereas protecting observe of your variety of installs is an effective place to start out with, keep in mind that each 1 in 2 apps is uninstalled throughout the 1st month, with “not in use” being the highest motive for hitting the ‘uninstall’ button (40%). That is why you could at all times join your set up metrics to your post-install metrics.

One other essential issue to contemplate earlier than leaping into the metrics is that not all are essentially relevant to your small business. Excessive abandonment charges on a registration type for an Insurance coverage app – is a significant pink flag that must be addressed ASAP, whereas for a Gaming app – skipping types wouldn’t intrude a lot with the consumer circulation.

To make sure you pursue related measurement, it’s paramount to pinpoint which metrics are value mapping for your small business, and which don’t have any actual influence in your backside line .

Probably the most strategic app metrics to measure in 2021-2022

To make it simpler so that you can navigate the dense woods of app metrics, we’ve segmented the under into buckets – marketing campaign, App Retailer, set up, engagement, income, and fraud. Let’s make sense of all of it:

Every marketing campaign is totally different, which brings uncertainty to many entrepreneurs who aren’t positive what to measure.

For instance, social media requires that entrepreneurs take note of engagement for the sake of remarketing. PPC lives and breathes on the press. And an search engine optimisation technique revolves round area authority and rankings.

That is why the marketing campaign metrics you measure ought to at all times revolve across the marketing campaign targets you’ve set prematurely.

Listed below are two campaign-related metrics you really want to make pals with:

1 – Click on by way of Charge (CTR)

Definition: The share of customers who clicked an advert, out of the whole variety of customers who seen it.

Calculation: Variety of clicks / Variety of advert views

Why does it matter: Though considerably of an arrogance metric, CTR is an effective indication that an advert’s inventive is performing nicely based mostly on the clicks obtained.

2 – Click on to Set up (CTI)

Definition: The share of customers who clicked an advert and went on to put in your app.

Calculation: Variety of installs / Variety of advert clicks

Why does it matter: Measuring the direct conversion between the 2 strongest touchpoints on a pre-install consumer journey, CTI is each socially and technically important, as decrease charges may point out an irrelevant viewers, ineffective creatives, poorly optimized App Retailer web page, or gradual loading time earlier than an set up is full.

Tied into App Retailer Optimization (ASO), these metrics will let you optimize and enhance your app’s visibility, in a similar way to search engine optimisation. though ASO is an unlimited world, right here’s an essential one you want to hold observe of:

3 – App Retailer conversion fee

Definition: The share of customers who reached the App Retailer web page and went on to put in your app.

Calculation: Complete # of installs / Complete # of customers on the App Retailer web page

Why does it matter: Gauging your App Retailer web page efficiency is a key element to sustaining your ASO. In case your web page is correctly optimized, and informs your customers of the added worth of your app in a transparent and engaging means (ideally with video) – will gas up your App Retailer conversion charges.

A key ingredient in each marketer’s cookbook, install-related metrics are your means to make sure your advertising and marketing efforts are justifying themselves. Listed below are a few essential install-related metrics it’s a must to hold a detailed eye on:

4 – Natural / non-organic cut up

Definition: The proportion of marketing-driven installs, e.g. non-organic installs (NOI) out of your whole installs.

Calculation: Complete # of non-organic installs in an outlined time-frame / Complete # of installs throughout the identical time interval

Why does it matter: Understanding your set up kind cut up and the ratio between paid and natural customers will enable you decide your app’s natural multiplier and halo impact.

A sub class could be non-organic cut up by channels, the place you possibly can additional break down non-organic installs to paid and owned media (e.g. SMS, web-to-app conversions, electronic mail, weblog) to grasp how one can allocate your price range extra effectively through the use of extra of your individual, moderately than paid media properties.

5 – Share of remarketing conversions

Definition: What’s remarketing, you ask? A advertising and marketing methodology designed to re-engage present app customers throughout paid and owned channels.

Share of remarketing conversions, additionally known as the typical retargeting share, is the proportion of remarketing conversions out of total advertising and marketing conversions (together with NOI).

An app’s remarketing conversion is counted when a consumer clicks on a promotion and opens an app.

Calculation: Complete # of remarketing conversions / Complete # of promoting conversions

Why does it matter: Throughout most verticals, app entrepreneurs are utilizing owned and paid media to re-engage with present customers. Remarketing has develop into a key technique that improves retention and in flip consumer LTV and profitability (it’s less expensive than consumer acquisition).

There are many metrics for analyzing consumer engagement. Nonetheless, you don’t actually need to trace all of them. Those it is best to observe rely on the specifics of your small business and the class of your cell app.

For instance, the variety of objects added to a cart or cart abandonment charges are related to eCommerce cell apps. However for social media apps, monitoring figures like time per session per consumer or the variety of clicks, feedback, shares, and likes – are rather more essential.

Listed below are 6 engagement-related metrics that each marketer wants to observe carefully, throughout most strains of enterprise:

6 – Retention fee

Definition: The variety of returning customers after a given time interval.

Calculation: Complete # of lively customers who have been lively on a particular time frame since set up / Complete # of customers who launched the app for the primary time throughout the chosen date vary.

Why does it matter: A excessive retention fee is usually a superb indicator of a “sticky” or worthwhile consumer expertise, because it includes frequent or constant utilization by its customers. In different phrases, retention is the supply of monetization; it will increase the prospects of in-app purchases and drives larger in-app advert income.

Typically talking, common retention charges are typically very low throughout the board, which matches to indicate how a lot of an issue it truly is, and the way essential it’s to consistently measure and mitigate it.

7 – Common classes per consumer

​​Definition: The typical period of time customers spend in your app per single go to.

A session begins the second a customer arrives at your app and ends once they exit or stay inactive for a predetermined time span. So long as the customer interacts together with your app, the session continues.

Calculation: Complete # of classes / Complete # of customers

Why does it matter: Measuring session lengths and analyzing them based mostly on segments will enable you higher plan your campaigns, by figuring out top quality vs. much less engaged customers and focusing on them accordingly.

8 – Uninstall fee

Definition: The speed at which customers uninstall your app inside a predefined window.

Calculation: Complete # of uninstalls inside a predefined window / Complete # of installs throughout a set time-frame

Why does it matter: The speed of uninstalls lets you examine the standard of the customers you purchase from totally different media sources, campaigns, single advertisements or nations.

Throughout all industries, uninstall charges are typically extraordinarily excessive. They’re a robust indication that one thing is perhaps mistaken together with your app or onboarding course of, or that your promotions didn’t match your customers’ expectations.

9 – Funnel conversion charges

Definition: The proportion that identifies at what fee persons are progressing in your app’s funnel.

By mapping key in-app occasions in your funnel first, the conversion fee may be measured between any two occasions you outline, reminiscent of set up to buy, add to cart to buy, and so forth.

Calculation: (Complete # of desired occasion conversions / Complete # of preliminary occasions within the app) x 100

Why does it matter: Funnel conversion charges can rapidly illuminate the place your advertising and marketing and gross sales processes have fallen out of alignment. As soon as you identify and measure sturdy funnel metrics, you possibly can drive holistic calibration with goal insights, reminiscent of figuring out optimum personas for higher marketing campaign positioning, or validating the effectiveness of your advertising and marketing efforts.

10 – Paid Conversion Charge (PCR)

Definition: The quantity of conversion by way of paid promoting.

This contains PPC, show advertisements, social media advertisements (e.g. promoted Tweets or boosted Fb posts), sponsored posts or opinions, or every other methodology of promoting that includes a direct trade of cash for mentions or views.

Calculation: Complete # of conversions / Complete # of advert interactions that may be tracked to a conversion throughout the identical time interval.

For instance, in case you had 50 conversions from 1,000 interactions, your conversion fee could be 5% (50 ÷ 1,000 = 5%).

Why does it matter: PCR is a key factor in your paid search technique. In any case, in case you’re not truly turning lookers into patrons at a excessive fee, what are you promoting for?

PCR optimization allows you to maximize each cent of your PPC spend by discovering that candy spot that convinces the utmost share of your prospects to take motion – and in the end convert.

11 – Natural Conversion Charge (OCR)

Definition: The quantity of conversion by way of unpaid discovery.

This contains natural search, phrase of mouth mentions on social media, influencer advertising and marketing, public relations mentions and buzz, associated apps within the app retailer listings, or every other means of promoting that doesn’t contain direct paid promoting.

Calculations: Complete # of conversions – Complete # of paid conversions

Why does it matter: OCR is a good benchmark of inbound advertising and marketing success. In line with Search Engine Journal, customers obtained from inbound actions, reminiscent of blogs or webinars, have a a lot larger closing fee than their outbound counterparts, reminiscent of electronic mail or SMS campaigns.

In enterprise, the only most essential issue is the underside line. Listed below are 7 methods you possibly can measure your app’s potential to generate income and drive profitability:

12 – Value Per Set up (CPI)

Definition: Monitoring paid installs moderately than natural ones, CPI measures the fee an advertiser pays a writer for driving an set up.

Calculation: Advert spend / Complete # of Installs straight tied to advert marketing campaign

Why does it matter: Again within the days when $0.99 apps have been the trade commonplace, CPI was essentially the most ceaselessly used metric for measuring marketing campaign efficiency. Right now, KPIs like value per motion – that higher replicate the complexities of free-to-play markets – are gaining floor.

13 – Value Per Motion (CPA)

Definition: The price per a conversion motion.

This doesn’t essentially suggest the conversion comes from a brand new consumer, however from a brand new conduct reminiscent of signing up for a subscription, upgrading to a premium account, in-app purchases, or new permissions.

Calculation: Value / Complete # of actions being measured

Why does it matter: CPA is a pure efficiency metric that ensures fee is just made when top quality customers are acquired.

It’s usually distinguished from Value of Buying Buyer (CAC) by its granular utility. Armed together with your Common Order Worth (AOV) and Lifetime Worth (LTV – see under), you possibly can decide your individual CPA requirements.

14 – Lifetime Worth (LTV)

Definition: The quantity of income customers have generated from the second they put in your app to this point.

Calculation: Complete income generated since set up date / Complete # of customers who put in on that date

Why does it matter: Mixed with the typical income per consumer, LTV is a golden metric to find out the whole potential income or worth of your customers. Within the free-to-install app economic system, it’s a necessary metric to measure enterprise well being.

15 – Common Income Per Person (ARPU)

Definition: The typical amount of money generated per consumer by way of in-app purchases, advert impressions or clicks, subscriptions, paid downloads, or different types of monetization.

Calculation: Income throughout a predefined time frame / Complete # of customers

Why does it matter: ARPU informs you of the standard of your common consumer by way of what issues most – generated income.

In our trade, ARPU and LTV are used interchangeably; Day 90 LTV is identical as day 90 ARPU. The distinction lies in the truth that LTV needs to be based mostly on an set up date, whereas ARPU doesn’t.

If no set up date is about in your exercise experiences, merely search for all income generated throughout time-frame X, and divide that quantity by all lively customers throughout the identical time-frame, no matter once they put in.

16 – Share of paying customers

Definition: The proportion of installers who ended up making an in-app buy inside a given time-frame for the reason that preliminary set up.

Calculation: Complete # of customers that made a purchase order X Time after set up / Complete # of installs

Why does it matter: A key indication of high quality customers pushed from media sources, in addition to a great way to measure the efficiency of your monetization mannequin.

Even though solely 5% of customers spend cash on in-app purchases, the income these customers generate is 20 instances better than the income earned from all different paid customers mixed.

17 – Buy Frequency (PF)

Definition: The typical variety of purchases your customers made throughout a particular time frame.

By definition, this metric may also will let you hold observe of customers who made zero purchases, and who may very well be enticed to position orders utilizing focused campaigns.

Calculation: Complete # of purchases over a time interval / Complete # of customers throughout the identical time interval

Why does it matter: PF is a perfect KPI to measure consumer loyalty, in addition to spotlight underperforming merchandise or classes.

It additionally provides you the flexibility to establish these customers for smarter look alike advertising and marketing and remarketing campaigns. You may reward your highest PF customers, or on the flip aspect – exclude them out of your paid remarketing efforts, as they’re already extremely engaged as it’s.

18 – Return on Advert Spend (ROAS)

Definition: The cash spent on advertising and marketing divided by the income generated by customers from the advertising and marketing marketing campaign in a given time-frame.

For instance, a Day 7 ROAS of fifty% signifies that a consumer generated income that counts for 50% of the cash spent to accumulate that consumer. In different phrases, the 100% mark is the breakeven level.

Calculation: Person-generated income from a particular marketing campaign in given time-frame / Complete advertising and marketing spend

Why does it matter: The metric of profitability, ROAS is crucial metric for UA managers. By consistently evaluating revenue to ROAS, you possibly can higher consider the efficiency of your campaigns and the standard of customers they purchase.

What will we imply by cell fraud? Cell fraud encompasses a variety of schemes  that faux installs, clicks, impressions, or in-app occasions.

Fraud detection options use a mixture of huge information, real-time machine studying and AI, to assist entrepreneurs establish and flag fraudulent actions reminiscent of set up hijacking and click on flooding.

Listed below are 2 essential fraud-related metrics it is best to at all times take note of:

19 – App set up fraud fee

Definition: The share of total recognized or blocked fraudulent installs inside a sure cohort of app installs. Additionally known as attribution fraud, as its goal is to try to recreation attribution corporations to assign credit score to a fraudulent media supply.

Calculation: Fraudulent installs / Complete # of NOIs (together with NOI fraudulent installs)

Why does it matter: At $1.6 billion in H1 of 2020 alone, potential losses stay extraordinarily excessive. There’s no getting round it: proactively defending your app in opposition to cell advert fraud by protecting a watch out for fraudulent exercise – is an inevitable actuality that’s exhibiting no indicators of slowing down anytime quickly.

20 – In-app fraud fee

Definition: The quantity of in-app, post-install measurable occasions that both adopted a fraudulent set up or that have been detected as fraudulent, whatever the related set up’s standing.

These occasions can embody measurable, optimization-related occasions reminiscent of Value Per Motion (CPA) with related fee, in addition to in-app purchases.

Calculation: Customers that made a fraudulent in-app occasion X Time after set up / Complete # of non-organic customers that made an occasion X Time after set up.

Why does it matter: Fraudsters have just lately moved past installs to perpetrate fraudulent in-app exercise, simply as entrepreneurs began to maneuver in direction of CPA. For instance, putting bulk orders to a buying app, then cancelling throughout the allowed window to money in on excessive CPA prices.

The truth is, we’ve discovered a ratio enhance of 3x between fraudulent installs and fraudulent in-app occasions, an increase primarily pushed by gaming apps.

Honorable mentions

1 – Efficient Value Per Mille (eCPM)

The income generated per 1,000 impressions, eCPM gives a primary method to evaluating the worth of your site visitors and figuring out your CPM.

Whereas CPM is the speed a given advertiser is keen to pay for 1,000 impressions, eCPM is the writer’s earnings per 1,000 impressions.

Calculation: (Complete advert income / Complete impressions) * 1,000

2 – Day by day Energetic Customers (DAU)

The variety of distinctive customers that interact together with your app inside a 24-hour window. DAU is usually utilized by companies the place customers are anticipated to work together with the app each day (e.g. gaming apps).

3 – Month-to-month Energetic Customers (MAU)

The variety of distinctive customers that interact together with your app inside a 30-day window. MAU is usually utilized by B2B apps the place customers are anticipated to work together just a few instances a month or much less (eg. banking apps).

4 – The DAU/MAU ratio

This system lets you measure the relative quantity of month-to-month lively customers who interact together with your app over a number of 24-hour time durations.

Utilizing the DAU/MAU metric, you possibly can forecast traction and potential income over time, however much more importantly – it helps you establish the worth of your product by protecting observe of how usually customers return to your app.

Calculation: Complete # of DAU / Complete # of MAU

5 – Churn fee

The precise reverse to retention charges, churn fee is outlined as the speed at which your customers uninstall your app, cancel or downgrade subscriptions.

Whereas churn fee is unhealthy in itself, it turns into particularly problematic when your most useful or prime revenue-generating customers churn, which might have a noticeable, multi-faceted influence in your total enterprise.

Calculation: Complete # of churned customers / Complete # of customers

6 – Repeat Buy Charge (RPR)

This metric provides you the variety of clients that return to your app so as to make a further buy. It may possibly enable you with measuring buyer loyalty in addition to plan your gross sales methods.

Repeat purchases drive larger LTV for every acquired or natural buyer. The upper the repeat buy fee, the upper the ROI.

Calculation: Complete # of purchases from present customers / Complete # of purchases

7 – Common Order Worth (AOV)

Often extra relevant to eCommerce, AOV tells you the way a lot your clients normally spend in a single order. It lets you establish totally different segments based on spend, or to see which channels are only by way of income.

Calculation: Complete income / Complete # of variety of orders

8 – Internet-to-app conversion

The share of customers who begin their shopping for journey on the net and later convert in your app.

In a world the place customers consistently swap between units, encouraging your internet guests to change to your app is extremely advisable. The native app gives a much better consumer expertise and is more likely to entice customers to buy than your web site.

Calculation: Complete # of conversions in app / Complete # of customers who began on the net and set up the app

9 – Common Income Per Paying Person (ARPPU)

ARPPU is used to guage the effectivity of present in-app buy (IAP) occasions, the success of recent IAP occasions launched to the consumer circulation, and the impact of different occasions on IAP income (e.g. the choice to observe an advert moderately than pay).

Calculation: Complete income / Complete # of revenue-generating customers

Key takeaways

  • Cell apps, like human beings, thrive on suggestions. Merely put, it’s essentially the most environment friendly technique to assess your apps’ efficiency, perceive what must be improved, and propel your small business ahead.
  • Cell app metrics are each marketer’s key indicators for discovery intel, consumer engagement, shares or churn, and is why cell entrepreneurs reside and breathe measurement.
  • There are various, many app metrics on the market. However don’t overcomplicate issues by attempting to observe too many KPIs that don’t essentially apply to your small business. Experiment to search out the very best ones in your app, and optimize them to their full potential as you go alongside.
  • With each motion they take in your app, your customers are signaling you what to measure. Watch, hear, and be taught, as they’ll present you precisely what to maintain observe of now, and what to maintain observe of tomorrow.