When it comes to an app performance, as an app owner you need to know of how your app is performing. You can know if your app is performing really well or really badly based on a few metrics. These metrics also help you present your app to potential investors, or give you details on where you need to improve your app.
So without further due, here are 5 metrics that you need to monitor with your mobile application:
Retention Rate
Put simply, you need to see how many users you are retaining. This metric allows you to see how many people stick to your app after the churn. To generate the numbers for this, you may choose to use a statistic like app download or user’s first entry point.
You can calculate your retention rate using two statistics. For example, the number of users who posted a post / the number of users who logged in for the first time = Retention Rate. The point is, you calculate your retention rate based on actions that you think matter the most.
Churn Rate
This is the percentage of users leaving your app, or that don’t interact with your app the way you want them to. A simple way to calculate the churn rate is with the formula:
Churn Rate = 1 – ( Retention Rate in Percentage )
So, let’s say you retain 60% of your users according to your retention rate – Your churn rate would be 1 – 0.60 = 0.40
Having a higher churn rate would mean trouble for your app and this gives you time as well as data to analyse why you might be going wrong.
Daily Active Users – DAU
Using the app store analytics you would be able to tell how many app downloads happened over a period of time but if you want to find out how many people exactly used your app – the DAU is the metric you should refer to.
DAU = Individual users who open your app in a day.
Active Sessions
This metric helps you understand how much your customers make use of your app within a single day. For example, If you are building a social media app, chances are you would want your users to open your app more than two or three times a day.
This is a way for you to determine, if your users are using the app as frequently as you want them to use it.
Lifetime value
It’s natural that once you launch your app you would put in some effort to acquire your customers. While this is termed as CPA – Cost Per Acquisition, what matters more is how much value or revenue the customers bring to you over a period of time.
Having mentioned the above points, there are of course even more detailed metrics you can look into but the above 5 points are the basic metric points you should refer to. These point at all time to how your app is performing and whether you are in the red or in the black.
Want to make a profitable app? At TADCO we have helped clients achieve their revenue targets with beautifully made apps. Contact us today for a free consultation session.
