Mobile apps have completely transformed the way businesses operate. Gone are the days when a website used to be enough to reach a wider target group. The enterprises of the current era demand a pragmatic approach to connect with the potential customers and get them exactly what they require within a stipulated time. And that’s where mobile apps come into the picture. Consumer behavior has deliberately evolved over the years making businesses adapt to new strategies. With that said, enterprises often conduct market research to find a leading mobile app development company in order to state their requirement regarding an app idea.
But do you know an idea alone is not enough, you also need to decide with the KPIs of your mobile app that ultimately help businesses placing a valuation on the product?
In this guide, we will read comprehensively about why KPIs are important and what are the common KPIs product owners should include for performance analysis.
Why KPIs Are Important for Mobile Apps?
Before we jump headfirst into understanding why KPIs are important for making a purposeful app, it is crucial to comprehend what KPIs are. KPI stands for Key Performance Indicator which intends to provide a resolution to know what matters the most irrespective of the project. For example, if you need to assess the KPI to get a healthy lifestyle, you will analyze your health, pain-points, your eating habits, and based on everything, you will judge how you need to make the adjustments to get your wellness back on tracks. Now we know what KPIs are, let’s wade into interpreting why it is important for making an app fruitful for the users.
The product owner assays various aspects in order to measure the general performance of a mobile app. When you set the KPIs for your app, you get involved in regular reporting and analysis of your app so that you can measure the progress timely and take a considerate walk towards the objective the product owner has harmonized for the application. This involves analyzing performance, engagement, and revenue metrics.
Top 5 KPIs to Measure Mobile App Performance
There are plenty of things that come into view when it has to be about judging the performance of an app, however, how much weightage should be given to each element is what developers and publishers need to be considerate of while measuring the capability of the product. While some people believe that KPIs are just about getting the analytics report of the app, in a true manner, KPIs are about understanding if the app is performing as per the expectations or not. All things considered, here are the top five most-essential KPI metrics that compute the success of an app.
Total Number of Downloads of Mobile App
One of the easiest and smartest ways to know whether your app has fulfilled the user’s requirements or there is something that has been abandoned to make the mark is to gather the statistics of the total number of downloads for an app. Though the marketing performance of mobile apps depends heavily on analytics and metrics, the exact download numbers give users a thorough idea of whether this particular app would be the right fit as per their requirement or not. In simple terms, getting the download data for an app is plain sailing for KPI measurement.
Retention Rate of your Mobile App
Why is retention rate important? What can you know about analyzing the retention rate? These are the most asked questions that are weaved around the topic retention rate. Understanding user retention for the website as well as an app is important to comprehend whether your idea is being loved in the real world and most importantly by real people. By gathering the analytics of how many users reverted to the solution they had uninstalled a long time ago, as a product owner, makes you understand what changes made users do so. The higher the retention rate, the more constructive implications there would be on the app.
Daily Active Users
Let’s suppose you have asked developers for on-demand app development in the Food category and the team of talented programmers and developers burnt the midnight oil and get you an app that would be cherished by users but after a certain period of time. Now you get to know that your app is not reaching the people, what would you do now? You would look for strategies to adapt but before anything else, you first gather the number of users on your app monthly and daily. Averaging the daily active user will give you an idea of whether the valuation of your app is being done as you anticipated or it is something else.
Cost per Install
CPI is a pricing model mainly used in mobile user acquisition campaigns. That means every time a user installs an app through an advertisement, it benefits publishers. It is one of the many metrics by which people measure their advertising budget for an app. This enables enterprises to understand the market model for the solution they have released by knowing whether the spendings on ads and the bid amount have been profitable. Apart from tracking the marketing budget, CPI provides app installation metrics to publishers as well.
Analyzing the diversity of brand mentions also affects the outreach as many publishers deliberately ask people to mention their brand but that could not be regarded as sustainable for the long term. Attaining social media figures, app traffics, and search volume data will allow publishers to obtain a true understanding of brand awareness. However, the one method that is coming out to be authentic and significant among all is how often your brand is mentioned in social media channels because that manifests the user demands and how they are behaving towards the app.
Since there are lots of key performance indicators that allow publishers and product owners to gain a cohesive report on app usage and metrics, the thoughtful tactic of making your app a successful venture lies in representing the insights that you received after getting the mobile app metrics. Keep the track of all the conversions, usage, and app metrics and sketch out the plan for attaining the objective towards the app accordingly.