Mobile Apps KPI Basics
Many organizations use Key Performance Indicators (KPIs) to create measurable goals and strategies for their future success. Setting meaningful KPIs is important to every business. This helps to organization in a way that it provides a possibility to focus on doing work with the real impact.
Just like with other businesses, KPIs are necessary in the mobile app world as well.
Different mobile apps require different KPIs depending on their differences in function and target audience, but some basic understanding can go a long way in helping to make that decision.
First of all, you should determine how your mobile marketing presence fits within your overall business goals.
You need to identify the criteria that are both most important to the business and numerically measurable. Increasing downloads shouldn't not be the only goal you set for your apps.
Now we will present you few KPIs which can be a starting point to help you choose the KPIs for your next mobile app project.
A very broad and commonly understood metric for apps. The more downloads, the better. Simple as that. But, instead of focusing on increase of downloads, you should set a target KPI - for example, to increase the number of downloads from 20000 to 100000 over the next half year.
App Store Rank
Increasing your app’s ranking, such as going from #50 to #25 in the Lifestyle section, is a great KPI. This KPI will have a strong effect on your total number of downloads. Increases in your app’s ranking can validate your marketing strategy and the cleverness of your app description copy.
Revenue Per User (RPU)
A simple way to calculate your Revenue Per User is adding up all the revenue generated, and dividing it across your user base. Increasing revenue per user is a popular business metric. Improvements in the product, marketing or merchandising can all greatly impact it. Some businesses with very long user lifecycles prefer to use the RPU metric instead of user Lifetime Value.
Lifetime Value (LTV)
User LTV is a KPI which is really important because it’s a very good way to understand the relative health of a mobile business. Most LTV formulas add up the total amount of revenue generated from different streams and divide it by the total number of users. The revenue per user number is then multiplied over the lifetime of a user. Understanding LTV is critical for optimizing marketing channels to focus on finding the right customers.
Converting a visitor into a customer is the end goal for many mobile apps. Whether it's about making a purchase, completing a survey or registering for an account - improving the rate at which this happens is a common KPI that can also be really useful. A change in UI or marketing that directly precedes an increase in conversion rates should prompt you to look at other instances in which your app’s user experience may be streamlined to produce better results.
Access to data is only the first step, but the real value is in insightful interpretation of that data. However, this can be a big challenge. That's why, it's necessary to have a deep understanding of your business, customers and the market.
There are also advanced data visualization systems and other analytical techniques that can provide a even deeper level of understanding.
So you must keep in mind that understanding the uses of these mentioned common mobile KPIs is important for any business.
HARNESSING THE POWER OF MOBILE APPS FOR THE BENEFIT OF YOUR BUSINESS