App world is getting more and more competitive atmosphere every single day. The reason why improvement is essential for companies, it is not so easy to lead this competion anymore. So we should use all the development opportunities we have. Here is the way to create an opportunity to improve your app; Measuring The Metrics.
The metrics tell us what is going on with our app. If we know which metrics we look at, we can find positive and negative results. It is easy to improve the app when you know what is wrong and what is right.
Let’s see the metrics that matter in 2018
Cost Per Acquisition (CPA)
We need to check marketing budget that we spend for our app. In order to tune up campaigns in real time and to measure the effectiveness of ad spending it will be useful to check the formula below.
So we can optimize our budget and find out how we collect users.
Lifetime Value (LTV)
Lifetime value shows how much each user is worth. So we can measure the value they bring to the app. Measuring the LTV, we can optimize acquisition strategy and analyse user loyalty. Check the customer lifetime value formula below.
LTV index should be greater han CPA.
Retention Rate (RR)
After the installation, we should track the user. How much time they spend with the app, when they give up using app and so on… Retention rate is the percentage of users who stay with an app for a given period of time after an install. Retention rate helps us to estimate app performance over time and to identify the most beneficial traffic source. Beside that it can be useful to define the most valuable users. Here is the formula of retention rate:
E – number of customers at the end of the period
N- number of new customers acquired during the period
S – number of customers at the start of the period
App Stickiness
Stickiness is the ratio of Daily Active Users to Montly Active Users. It shows the consistency of user engagement with the app. To calculate how we bring back the user to the app we use this metric. It helps us to optimize UX an to identify the most engaged users. You can see the formula below.
Session Length
Session lenght is key to understanding user behaviour. Providing a quality user experience is necessary for keeping users within the app as long as possible. That is why we should be stick to this metric. So we can optimize the app user friendly. The last formula is below.
Tracking these metrics will gain advantage to you in the competition for the first step. But there are more metrics you should follow to have full control over your app performance. We will mention the other metrics soon.
