Easy Tips to Determine The Success of Your Mobile App
Having a dedicated mobile for your business is no longer an option but an essential part. Though every app is built specifically to attract a larger customer base and offer ease & convenience, it has an end business goal.
Taking the help of an expert development team to enable businesses to convert their goals into reality to attain the app’s success. However, it’s not easy to attain these goals without timely analysis of app performance and upgrades to meet the evolving customer needs.
Whether you want to take advantage of reliable iOS and Android App Development Services, make sure that you hire someone that can debrief you about how you can achieve the targets and convert the app successfully.
In this blog, we will learn how app development methodologies & agile practices impact the performance of the app and the useful tips to monitor app progress towards goals.
How to Measure App Success Using KPIs?
To build a successful app, you need to measure the performance and improve customer experience to generate more revenue from your app. The process starts by tracking the app’s KPIs, which helps in giving an idea about what good performance means for your app.
KPIs are the best indicators and are mainly divided into 6 top categories, i.e., general app KPIs, Revenue KPIs, User Engagement KPIs, UX KPIs, App Store Category Ranking, and Marketing KPIs.
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Top Mobile App KPIs
They are the most general mobile KPIs that can be measured by the app development team. These indicators are as follows-
- App Downloads
This KPI signifies the number of app downloads over a given period after the launch, which measures the app’s popularity. The number of downloads will help in figuring out the areas for improvements, such as UX or marketing budgets.
- App Subscriptions
If your app offers features/content/upgrades with subscription fees, tracking the number of subscription signups can be a great way to track.
Unsubscribing enables you to monitor the features that must be updated or any bugs. This KPI helps in telling how users find the price/value ratio of a subscription.
If your app comes with basic and premium versions, KPI helps in tracking the number of people using the premium version, the percentage of total users, and whether the paid versions are getting higher ratings than the basic version.
- Growth Rate
Keep track of how your user base is growing and the app performance graph whether it’s steady or spiky growth.
For instance, does it spike during any events like feature updates or advertisements, or is the growth slow but steady?
Though every app is built keeping end-users in mind, your motive is to make money with your app. The below KPIs help in measuring how your app can generate money-
- Customer acquisition cost (CAC)
Acquiring new customers come with a cost, whether it’s for the cost of advertising, labor, etc. This amount is known as CAC and it can be calculated by dividing the gross revenue by the cost of advertisement and other acquisition-related costs.
- The average revenue per user (ARPU)
This KPI can be in any form of monetization like paid downloads, ad impressions or clicks, in-app purchases, subscription fees, etc.
ARPU can be defined as the average amount of money or value generated per user multiplied by the size of the total user base, which helps to give a rough idea of the monetary value of your product.
- Customer lifetime value (CLC)
Customer Lifetime Value is defined as the net profit customers generate, which includes the number of customers in and on the platform in ratio to the cost required for acquiring them. Many successful apps have a higher CLC to CAC ratio.
Using the below formula, CLC can be calculated by multiplication of the average value of a conversion, an average number of conversions in a time frame, and the average customer lifetime.
- Return on investment (ROI)
As the name suggests, the ROI of your app can be calculated by dividing the number of gains that you have generated by the amount spent on marketing and time spent on other expenses.
In simple words: ROI = (Gain from Investment — Cost of Investment) / Cost of Investment
Read More: How To Raise Money For a Mobile App Using MVP?
Top User Experience KPIs
User experience plays a great role in attracting users and retaining them for a long time. You must focus on tracking and measuring customer user experience from time to time to figure out the areas for improvement.
- Load time
Customers today have no time to wait, which is why the loading speed of your website or app is very important. Fast loading speed act as a great way to get customers’ attention.
Many people even uninstall the app not because of poor features but slow loading speed. Ensure that you keep focus on faster load time if you want to see mobile app success.
Another factor is the device support you offer for your app i.e. phone, tablet, or laptop. Know which device most of your target audience is using as it will help you target better and improve the app’s performance.
- Operating System
Two common app platforms are iOS and Android. If your app works on them, ensure that you keep track of the usage rate.
If either of them has an increase in crash rate or high uninstall rate, focus on finding out the reasons behind it and how you can improve.
Top User Engagement KPIs
These KPIs help in measuring engagement to give an idea of when, how, and where customers engage with your product.
- Retention rate
This defines the number of customers who return to your app after a specified period. Retention rate helps in getting information on how your brand creates value that people tend to come back.
Using formula, we can calculate Retention Rate= ((CE-CN)/CS) X 100
CE = number of customers at the end of a period
CN = number of new customers acquired during a given period
CS = number of customers at the beginning of a period
- Sessions (App Open Rate)
Sessions help in measuring the number of times users opened the app. It defines when a user has a specific set of interactions within a given period.
- Daily active users (DAU)
To predict a successful app’s future growth, we can calculate the number of daily active users. Many businesses having web and apps consider DAU as their primary measure of growth and engagement.
- Churn rate
This help in measuring the rate at which customers unsubscribe from or uninstall your product, to see how you can improve your app to reduce the churn rate.
Some of the main reasons can be a lack of updates, crash issues, functionality problems, etc.
Apart from the KPIs stated above, we also have marketing KPIs that define the effective marketing method to monitor your app store analytics- install source, channel breakdown, geometrics, demographics, etc.
Another KPI category that impact the app performance is app store category ranking which are keywords, reviews, ratings, etc.
Hopefully, you must have got the idea that measuring mobile app success is vital to any mobile app development project. Analyzing KPIs regularly and sticking to them will help businesses build a trustworthy base for their app optimization and growth plans.
This not only gives an accurate picture of how customers are using your app but also gives an invaluable step to continuously deliver value to them with timely updates.
Clavax, being a reliable Top Mobile App Development Company enables brands to deliver everything from business ideation to project delivery along with detailed reports for KPIs, to help you achieve app success.
If you are planning to build a new app from scratch or analyze the performance of the existing app, feel free to connect with our expert developers to see how your app is performing and how you must improve to make it even better.