Digitizing your business was one of the biggest steps you could while heading towards an impeccable business world.
Yet, your work is not completed, of course, an entrepreneurs’ work is never completed.
After you have climbed all those steps mentioned above, now it is time to measure the performance of various platforms on which your business is running.
Here in this article, we will discuss the performance of your applications, how you can measure the performance of your mobile apps, and why it is important to do so.
How Do You Measure Mobile App Performance?
`But before that, we will know the meaning of measuring the performance.
What Is a KPI All About?
A KPI stands for Key performance indicators.
These are the indicators or the tools that are used by the business people, entrepreneurs, or others to analyze, check, and measure the performance of a particular thing.
KPIs are used to determine the success of the business organizations or of a specific project, activity initiative, product, or program.
Why Is it Important to Measure KPI?
You have developed a mobile app for your business, further added it to the application stores, and then it got listed there.
Now it is indispensable to measure the KPIs or Key performance indicators of your mobile app to know its actual working.
Also, it is crucial to assess the value and performance of your app to know whether:
- Is the app working according to the set benchmarks?
- Is it bearing the set profits?
- Is it getting the desired leads to the business?
- Does it have the potential to convert?
- Is it giving the best ROI (Return on investment)?
Key Performance Indicators That You Should Track
How do you measure mobile app performance? Three main types of metrics define and measure the success of a mobile app.
Further, they have different types of KPIs according to their insights that you should track for optimizing your mobile app performance.
The three metrics are:
- General Metrics
- Engagement Metrics
- Revenue Metrics
Now, it’s the time to mention the KPIs according to the metrics:
1. General Metrics
As the name suggests, general metrics give you general insights about the performance of the app.
If you own a mobile app for your business, you can use these general metrics to measure the app performance
Also, the weight of every KPI mentioned below changes as per the nature of the app.
Following are the general KPI’s:
The foremost key performance indicator to measure the performance of your mobile app is your brand awareness.
Brand awareness is related to:
- The impression your mobile app has made on different platforms as well as;
- How many times it appears in the search results.
The more your app is seen in different portals, the more brand awareness your business has.
Install or Uninstall
Besides brand awareness, the installation of your mobile app in the mobile phones of the users is another important tool or key performance indicator to measure the performance of your mobile app.
You need to track whether your mobile app is installed in the users’ phones or not.
As mere installation does not confirm that it will be installed in the user’s mobile forever, he or she may uninstall it anytime.
Another most important general KPI is a download KPI. If you do not know the ratio at which your mobile app is being downloaded, then there is no fun of measuring the performance of your app through other key performance indicators.
As mostly everything commence after the users download your mobile app in their mobile apps.
Most of the other KPIs are based on the download KPI. The maximum number of times the app will be downloaded, the maximum it will become popular.
2. Engagement Metrics
The second type of metrics is engagement metrics.
These kinds of metrics give you insights about:
- Where; and
- In which ways;
The users engage with your mobile app.
App Open Rate
This KPI works on sticky users’ principal, meaning thereby the duration or session for which a user interacts with your app with his or her unique IP address for a specified period of time.
This metric shows the loyalty of the customers towards your app. The more sessions the users generate, the more sticky users will be there.
The amount of time a user spends on every session is called the session length.
It is good to have the users who generally spend more time on a mobile app, but at the same time, you need to know whether it is related to any crash?
The time length between two or more sessions is called the session interval. It is usually seen that the short session intervals are better.
Short session intervals are a useful mobile marketing key performance indicator if timely events are not necessary. It tells you how often your users visit your app?
Again the retention rate key performance indicator is related to the loyalty of the users who use your mobile app.
It shows the number of users who come back and use your mobile app after a certain period of time of installation.
This is the most valuable KPI. The average retention rate after a period of 90 days is 29%.
The adoption of new mobile apps is the reason behind this stat.
The higher your retention rate is, the more qualified your app will be.
Hence it will bear the maximum future earnings.
The number of users who stop using your app can be ascertained through the churn rate.
It is completed opposite of retention rate.
Hence, the lower the churn rate is, the better the growth rate of your mobile app will be.
3. Revenue Metrics
Revenue metrics for mobile apps is another and third type of metric that shows:
- How to measure mobile app performance?
We all know the main purpose of an entrepreneur to have a mobile app is to earn money through it.
Now, the following KPIs will show you:
- How profitable your app is? And
- How much revenue your app is generating?
Daily Active Users
As the name suggests, the daily active users KPI indicates the number of users on a daily basis. Again, this is an indispensable mobile advertising KPI that leads you to do marketing.
Depending upon the features of your app, there may be a pattern that could show the number of active users on a particular day.
User Growth Rate
The user growth rate KPI shows the growth rate of the number of users in a specified timeline.
It indicates the growth rate, whether it is:
- High; or
- Steady; or
With the help of this KPI, you can explore the reasons such as pricing campaigns or advertisement activities.
The Average Revenue Per User
The average revenue per user is one such KPI that shows the average amount of revenue generated per every user.
There are several methods of monetization like:
- Paid downloads;
- In-app purchases; or
- Ad clicks
You can figure out the total revenue by multiplying the total number of users.
Customer Acquisition Cost
Customer acquisition cost KPI shows the amount of cost incurred in acquiring new customers.
This is also a valuable mobile advertising KPI as it helps in gaining new customers.
One needs to spend on several actions, including:
- Advertisement on social platforms or search engines; or
- Hiring a content writer; or
- Attending an event; and
- Other marketing costs.
Customer Lifetime Value
Customer lifetime value KPI shows the total amount of revenue a customer generates for your mobile app throughout the lifetime.
This KPI is good to see: How much you have earned with your engagement?
- It might be listening to music for a music app; or
- It might be an ad impression for a news app.
The crucial point is to be able to:
- Define the meaning of value and be able to:
- Define the users who add value to your mobile app.
This KPI shows the rate at which your goal is met, and this is one of the beneficial mobile marketing KPIs.
There are two conversion rates:
- Organic conversion rate: This is an unpaid rate of conversion.
- Paid conversion rate: This is a paid rate of conversion.
Return on Investment
The indispensable and one of the popular mobile app performance KPIs is the return on investment KPI.
The reason is that after calculating and analyzing all the above mentioned KPIs, you would definitely want to know how much return you are getting on the overall investment you have made.
In order to strengthen the marketing efforts that you have applied in your mobile app, it is crucial to measure the ROI KPI.
To conclude, key performance indicators are very crucial to measure the performance of your mobile apps.
The above mentioned KPIs are indispensable with the help of which you could track the optimizing of your mobile app performance.