Key Mobile App Metrics to Tracktips 10 min read
When you're gauging the true health of your mobile app, there are metrics which should be kept under constant review. Look at them in a meaningful, yet actionable way to make more accurate and data–based decisions.
Daily Active Users (DAU)
Knowing the number of app installs is not enough: an individual can download the application and never use it again. DAU identifies the number of individuals who use or interact with your application on a daily basis. Keep in mind that it shows the number of users, not sessions.
Monthly Active Users (MAU)
Like DAU that shows the number of individuals who use your application daily, MAU shows the number of users who open your application within 30 days (it can be a specific month or the prior 30 days). If there s any kind of seasonality in using your application, you'd better plan your marketing activities and in–app advertising to those month in order to generate maximum revenue.
This is something that you have to keep an eye on constantly. A small change in your either monetization or
promotion strategy can affect your revenue. This metric will show you which activities to continue or which
ones you have to stop. Average Revenue Per User is the amount of revenue that you are generating from each
user of your application. It indicates the value of an individual user for your business.
To calculate ARPU, you have to divide total revenue by the number of total users.
Example: $700,000 / 1200 = $583
Apart from that, you can define the average revenue per user on a daily basis in case you notice revenue increase after the launch of a certain marketing activity. In order to calculate it – divide total daily revenue by the number of active users for the same day.
Lifetime value refers to an average value that the users gives us over his lifetime within the application.
This is one of the most important metrics that has to be tracked. It is not always enough to acquire new
users. App developers have to increase the retention rate and encourage users to continue in–app purchases.
Which is why most marketing activities should be focused on attracting high–value users. This is a place where
app developers should consider user experience.
The main thing app owners has to remember – LTV should be greater than CAC. Otherwise, you are in a trouble.
To count LTV, use the following formula: ARPU x Customer Lifetime
Example: ARPU is $25 and average lifetime of a user is 2 years. In this case, the LTV is $50 per one customer.
Stickiness describes how often users come back to your application. It is calculated in the percentage,
dividing DAU by MAU. The higher is the percentage, the more often people return to your app. Thus, you need to
strive to engage your users and increase daily and monthly active users.
Example: Your application has 20,000 daily active users and 30,000 monthly active users. Thus, the stickiness to the app is 20,000/30,000= 66,7%.
There's definitely the difference between opening an app and spending there half an hour. Session length shows you the time users spend in your application. Session length will help you identify the depth of users engagement and help to optimize monetization strategy. Knowing the length of session, you will choose when is the best time to show them ads with the highest possibility of interaction with it.
Customer Acquisition Cost
CAC stands for the amount that you spend in order to get a new user of your application. The calculation is
quite easy – you need to divide the amount that you've spent to acquire new users by the number of users that
Example: You spent $2,500 on user acquisition and got 700 new users, your CAC is $3.6.
User Retention rate
To measure the success of your application, it is necessary to understand the retention rate – the number of
users who return to your application within certain period of time (1 day, 7 days, 30 days etc) from the
Calculation of retention rate depends on what you are going to learn from the retention rate. Anyway, you will be comparing the cohorts of a certain period of time (i.e. current month) with the same users in previous period of time (i.e. last month).
The formula is the following: number of people in cohort who use the app in a certain period of time divided to the number of people in cohort who used the app in a previous period of time
Example: 500 people in December cohort used app in January / 2,000 users in December new user cohort = retention rate is 25%.
Churn rate is the number of users who churned during a given time period compared to total number of users
over the same period of time.
The way to calculate churn rate is the following: 1– retention rate
Example: 1–0.4 = 60% – churn rate
Return on Investment (ROI)
Don't want to give you the wrong idea and say that ROI calculation is easy. This is really difficult to get
reliable numbers and take into account all the measures.
In order to be able to calculate ROI, you need make cost analysis and take into account all the expenditures - app development, maintenance, update, promotion etc.
The easiest ROI formula:
Remember, once we know something, we find it hard to imagine what it was like not to know it. We hope you'll find these metrics helpful and adjust them to your app KPIs .
Happy metric measurement!