So you have a mobile app, or maybe you are thinking of hiring a mobile app development agency. What are some of mobile app’s KPIs that are must for you to track and why!
- New Users – Number of new users is key to identifying your growth rate. It also allows you to identify if there is an issue. For example, if you average 100 new users a day and this Monday you had only 10, it gives you an indication that something is wrong and needs further investigation.
- Sessions – Number of sessions can tell you how much users are using your app. This is different from new users, as it allows you to monitor total traffic to your app. If number of sessions increase, while new users is stable this tells you that people are using your app more frequently. While if new sessions decrease and new users are decreasing there is probably a reason either internal more bugs or external such as a new competitor.
- Avg. Screen Views Per Session – Depending on your app, you may want to know how many screens users interact with on average. The higher the screen views the better, if the number suddenly drops it is a good indication that something is wrong inside your app that needs your attention.
- Session Length – Session duration is an alternative or an addition to the average screen views per session. If the session length increases it is a good indication that people are engaging with your app. This is especially important for those apps that are being monetized via ads.
- Crashes – This is critical for your mobile development freelancer or agency. There is nothing worst then to have marketing bring people to your app only to find out it is broken. Crashes therefore can help identify issues in your app so it can be solved.
- Retention Rate – This tells you what percentage of your users are coming back after the initial session. This is a great way to judge how important your app is to a user.
- Conversion Rate – If your app is being monetized by selling a product or a service or it is a paid app, it is important to keep an eye on your conversion rate. To calculate you would take the number of users that have done something that is considered a conversion (i.e. downloaded an app, ordered shoes, filled out a form, made an in app purchase, etc…) dividing it by the overall size of users or app views to get to the percentage.
- Revenue – This goes without saying, if the goal of your app is to produce revenue either by charging for the app, in-app purchases, running ads or selling products/services it is important to keep track of how well your app is performing financially.
- Cost Per Acquisition – Some apps are lucky to have a big brand behind them or have been optimized using ASO without the need to pay for users, however, most do not have that luxury. Therefore, understanding your cost per user acquired is key to a successful growth strategy. Keep in mind, that sometimes cost increases due to market forces.
- ROI – Finally, your app needs to be profitable, therefore, looking at total cost of operating your app compared to your revenue is important. Your cost can include maintenance, server fees, marketing cost, app optimization costs, human resource, new feature builds and so on. While your revenue can be direct i.e. number of apps sold or indirect number of new users driven to your website or the amount of data collected.
There are just some of the KPIs that are required to run a successful app. It is advisable to tweak your KPIs based on your unique needs. Your business is unique so should your reporting. Remember, to keep it consistent over time and monitor it on a daily or weekly basis. To get help with your mobile app KPIs or to build dashboards, contact StrategicDB for help.