The Top 5 Key Performance Indicators (KPI) for Mobile Apps
A mobile app is one of the newest opportunities for businesses to expand their image and interaction with their customers. The option to have your brand available at a 24/7 rate to users is not only incredibly attractive, but very useful to gather vital information from users. While it is important for the apps to accurately reflect what the company is displaying to the public, there needs to be a certain “pull” factor that attracts users to the app. This “pull” factor can be a feature, style, or functionality that brings something new to a very crowded app market. While this “pull” factor is great for getting users to the app, properly analyzing user metrics is what will keep them in and using the app. There are numerous metrics, or key performance indicators (KPIs), to look at, digest, and act upon, but what ones are most helpful? Let’s take a look at the top 5 most common KPIs that are analyzed in the mobile market.
This is a great KPI to look at, as it really highlights how the app is being used. It is often quoted as one of the key metrics to track and use in shaping an app to succeed, as per The AppMaker. Areas looked at here are: What screens are being looked at the most? Which screen seems to dominate users’ time? Are users on phones or tablets? iOS or Android? What time of day are users using your app? All of these factors can be put towards how to improve your app, as your strengths and weaknesses quickly become apparent.
2. Retention Rate
Keeping people’s interest and attention is one of the toughest challenges in the mobile industry today. With so many other mobile options out there for users, if your app boasts a solid retention rate, then it holds some true value for the market. If it does not, looking at how users are using your app can provide some help into which direction you can move to help retain users who do install your app. To get a good idea of what range your retention rate should fall into, measure it against benchmarks already established for your particular niche/market.
3. Session Length
With consumers’ app usage increasing year over year, having consumers spend longer in your app equates to more revenue in the long run. This ties right into retention rate, as longer app sessions indicate a deeper relationship and higher user engagement with an app.
4. Average Revenue per User
Working out the average value of each user on your app is a great way to understand where you can spend extra money on marketing your app. Consider where the user is spending money if using in-app purchases, or what screens the user most resides on for in-app advertisement. Also consider your app’s effect on consumers outside the app, such as increases in brand awareness, brick and mortar purchases, and online-based purchases.
5. User Acquisition
How are your users coming to your app? Organic search, word of mouth, and paid advertisement are all common ways a person discovers your app. Knowing your target market and the best points of contact to them, will help to increase user acquisition. Also be mindful of where the user resides, as this can be a key statistic to watch if you are wishing to localize the app into other languages in the near future. Kissmetrics considers user acquisition one of the must have mobile app metrics.
While there are many other performance metrics to watch, (Mashable makes a case for Active Users, App Launch times, User experience, and user lifetime value being added to this list) these are the 5 most common KPIs that are watched. Analytic software, such as Google Analytics, also offers up a large host of information pertaining to these top 5, and can be acted upon immediately. Carefully watch and adjust your app moving forward, making sure these KPIs stay strong, and greater success will soon follow.