16 Essential Mobile App Metrics for Effective App Analytics in 2024
Developing a mobile app is just the beginning. The next crucial step is to ensure that the app reaches a wide user base and generates revenue. However, this progress cannot be determined without the essential step of tracking and monitoring the necessary metrics. So, what are these crucial metrics that play a pivotal role in app deployment?
Let's take the Zen Melodies app as an example. This app is designed to create a serene environment for users, combining relaxing music spaces with brainwave sounds and carefully selected nature sounds to help them quickly fall asleep and relax instantly. Here are some of the metrics we use to track its performance.
Understanding the reasons and methods for tracking these metrics is crucial. Let's walk through the user journey, from discovering the app on the App Store to downloading it, to see how these metrics affect each step.
User Discovery and Acquisition Metrics (4 Metrics)
On the App Store, we need to monitor the following metrics:
1. Impressions
The number of times the app is shown in search results or app store listings.
Formula:
N/A (This metric is provided by app store analytics)
Example: If Zen Melodies appears in search results 10,000 times, the impressions count is 10,000.
High impressions indicate good visibility. If impressions are low, consider optimizing your app store keywords and descriptions.
2. Page Views per Impression
The ratio of page views to impressions indicates how many users clicked on the app after seeing it.
Formula:
Page Views / Impressions
Example: If Zen Melodies gets 2,000 page views from 10,000 impressions, the Page Views per Impression ratio is 0.2 (20%).
A higher ratio suggests the app's listing is attractive and relevant to users' search queries.
3. Downloads per Impression
The ratio of downloads to impressions shows how effectively the app's store listing converts views into downloads.
Formula:
Downloads / Impressions
Example: If Zen Melodies is downloaded 500 times from 10,000 impressions, the Downloads per Impression ratio is 0.05 (5%).
A higher ratio indicates that users are convinced to download the app after viewing it.
4. Downloads per Page View
The ratio of downloads to page views indicates the effectiveness of the app's store page in convincing users to download the app.
Formula:
Downloads / Page Views
Example: If Zen Melodies gets 500 downloads from 2,000 page views, the Downloads per Page View ratio is 0.25 (25%).
A higher ratio means the app's page is compelling and persuasive.
Comparing these metrics with the category's average performance can help us determine whether we are performing well or poorly.
Key Performance Metrics
After the acquisition, here are the metrics we need to focus on to keep our users engaged and committed to the Zen Melodies app:
1. Daily & Monthly Active Users (DAU & MAU)
The number of unique users interacting with the app on a daily and monthly basis.
Formula:
N/A (These metrics are provided by analytics tools)
Example: Zen Melodies has 1,000 DAU and 10,000 MAU.
High DAU and MAU indicate strong user engagement. Compare these metrics over time to track growth or decline in user activity.
2. Cost Per Install (CPI) or Cost Per Acquisition (CPA)
The cost associated with acquiring a new user. CPI is the cost paid for each install through advertising, while CPA includes all expenses related to acquiring a user.
Formula:
CPI = Total Advertising Cost / Number of Installs
CPA = Total Acquisition Cost / Number of Users Acquired
Example: If you spend $5,000 on advertising and get 1,000 installs, the CPI is $5. If the total acquisition cost (including marketing and sales expenses) is $10,000 for 1,000 users, the CPA is $10.
Lower CPI and CPA indicate cost-effective user acquisition. Compare these costs with the average revenue per user to ensure profitability.
3. Stickiness Ratio
The frequency with which users return to the app is calculated as DAU divided by MAU.
Formula:
Stickiness Ratio = DAU / MAU
Example: With 1,000 DAU and 10,000 MAU, the stickiness ratio is 0.1 (10%).
A higher stickiness ratio means users return to the app frequently, indicating high engagement and satisfaction.
4. Retention Rate
The percentage of users who continue using the app over a specific period.
Formula:
Retention Rate = (Number of Users Retained at End of Period / Number of Users at Start of Period) x 100
Example: If 800 out of 1,000 users continue using the app after 30 days, the 30-day retention rate is 80%.
High retention rates suggest that users find ongoing value in the app, reassuring us about the app's longevity and value. Track retention rates at various intervals (e.g., 1 day, 7 days, 30 days) to identify when users are most likely to drop off.
5. Churn Rate
The percentage of users who stop using the app over a given period.
Formula:
Churn Rate = (Number of Users Lost During Period / Number of Users at Start of Period) x 100
Example: If 200 out of 1,000 users stop using the app within 30 days, the churn rate is 20%.
A high churn rate indicates issues with user satisfaction or app functionality. Improve user experience and address feedback to reduce churn.
6. Exit Rate
The percentage of users who exit the app from a specific screen.
Formula:
Exit Rate = (Number of Exits from Screen / Total Screen Views) x 100
Example: If 500 out of 2,000 screen views result in exits, the exit rate is 25%.
High exit rates on critical screens may indicate usability issues. Analyze exit rates to identify and improve problematic areas in the app.
7. Customer Lifetime Value (CLV)
The total revenue expected from a user over their entire app usage.
Formula:
CLV = (Average Revenue Per User x Average User Lifespan)
Example: If the average revenue per user is $50 and the average user lifespan is 1 year, the CLV is $50.
A higher CLV indicates greater long-term value from users. Compare CLV with user acquisition costs to assess profitability.
8. App Crashes
The frequency and causes of app crashes.
Formula:
Crash Rate = (Number of Crashes / Total App Sessions) x 100
Example: If Zen Melodies experiences 50 crashes out of 10,000 sessions, the crash rate is 0.5%.
Aim to minimize the crash rate to ensure a smooth user experience. High crash rates can lead to user frustration and increased churn.
9. App Ratings & Reviews
User feedback and ratings on app stores.
Formula:
N/A (This metric is provided by app store analytics)
Example: Zen Melodies has an average rating of 4.5 stars from 1,000 reviews.
High ratings and positive reviews enhance the app's credibility and attract more users. It's important to monitor reviews to identify and address common issues or suggestions, making our users feel heard and valued.
10. Session Length
The average time users spend in the app per session.
Formula:
Average Session Length = Total Duration of All Sessions / Number of Sessions
Example: If the total session duration is 20,000 minutes from 10,000 sessions, the average session length is 2 minutes.
Longer sessions often indicate higher engagement and app value. Analyze session length in conjunction with user actions to understand usage patterns.
11. Average Revenue Per User (ARPU)
The average revenue generated from each active user.
Formula:
ARPU = Total Revenue / Number of Active Users
Example: If Zen Melodies generates $50,000 from 10,000 active users, the ARPU is $5.
A higher ARPU indicates better monetization. Compare ARPU across different user segments to identify high-value users.
12. Return on Investment (ROI)
The profitability of the app is calculated by dividing the net profit from the app by the total investment.
Formula:
ROI = (Net Profit / Total Investment) x 100
Example: If the net profit is $20,000 from a total investment of $50,000, the ROI is 40%.
A positive ROI indicates successful monetization and cost management. To maximize ROI, optimize both revenue and costs.
By diligently tracking and analyzing these metrics, you can make informed decisions to enhance user experience, increase engagement, and optimize revenue for your mobile app.