{"id":7076,"date":"2022-08-05T14:42:24","date_gmt":"2022-08-05T14:42:24","guid":{"rendered":"https:\/\/shoppy.is\/discover\/12-kpis-to-measure-the-performance-of-your-mobile-app\/"},"modified":"2022-12-13T13:52:00","modified_gmt":"2022-12-13T13:52:00","slug":"12-kpis-to-measure-the-performance-of-your-mobile-app","status":"publish","type":"post","link":"https:\/\/shoppy.is\/en\/discover\/12-kpis-to-measure-the-performance-of-your-mobile-app\/","title":{"rendered":"12 KPIs to measure the performance of your mobile app"},"content":{"rendered":"\t\t
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12 KPIs to measure the performance of your mobile app<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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It is common practice to say that users prefer to use a smartphone to shop online because they always have one in their hands. But theories are not enough for a retailer or a trader who has to plan his own strategies. They need to have data on which to develop their marketing campaigns and on which to adapt their offer. This is what the KPIs (Key Performance Indicators)<\/strong> are for These are key parameters that measure the performance of any digital tool such as your ADV, your website, or your mobile app<\/strong>.<\/p>\n

In this article, I want to introduce you and explain 12 KPIs that you need to keep under control in order to analyze the performance of your mobile app and optimize it<\/strong>.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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1. Download<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The main thing, when you launch your app on the market, is to understand if the success it gets is equal, higher or lower than what you expected. The number of installations<\/em> you have made<\/strong> is a first estimate that, although approximately, gives you an idea of how much interest you have created around your mobile asset. <\/p>\n

Getting users to download your mobile app can be a challenge, but it\u2019s not impossible. Use your site to better advertise it, spread it on social media, and let your most loyal users talk about it for you. In this way, the number of downloads will skyrocket.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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2. Retention rate<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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User\/customer retention<\/em> is nothing more than the ability to retain users\/customers and entice them to use and purchase your product repeatedly over time. So, when we talk about Retention Rate we refer to the percentage of customers you are retaining<\/strong>. If you want to know more about how to measure it I leave you a very interesting article<\/a>, which will be much clearer and more comprehensive than I can be in a few lines. Also, if you want to know some specific strategies to increase your User Retention, here it is<\/a>.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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3. Churn rate<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The critical points of our strategy deserve the same attention that we dedicate to the analysis of our best performance, if not even more. The Churn Rate, the rate of abandonment<\/em><\/strong>,<\/em> corresponds to the percentage of users who abandon the use of our product Referring to the app, therefore, it corresponds to the percentage of users who uninstall it from their mobile devices. You can get it as the difference between the Retention Rate<\/strong> and 1. So if, for example, your Retention Rate was 25%, you would have a Churn Rate of 1 – 25% = 75%.<\/p>\n

What drives users to delete, forever or only temporarily, your application? Here<\/a> are some explanations of the phenomenon and how to counter it.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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4. Conversion rate\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The Conversion Rate<\/em><\/strong> represents the percentage of users who perform a particular suggested action, or who respond to a specific Call To Action<\/strong>. This can be the purchase of a product, the opening of an advertising banner, or the execution of a download… Do you want to know more? I have an entire article<\/a> for you on the subject, considering the importance of this metric to quantify the performance generated by your app. <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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You should teach them how to take advantage of using your app in a few simple steps.<\/strong> The first time users start it, they need to know how to use it and take advantage of it. No mistakes are allowed here. You NEED to make a great first impression. The user must think : “Wow! That’s exactly what I wanted!<\/em>“<\/p>\n

Okay, but how do I create a great on-boarding process? One simple rule you might follow is this: repeatedly run A\/B tests that allow you to collect, analyze useful data, and find out what drives users to perform the action you suggest to them. This plays a crucial role in optimizing the conversion rate!<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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5. Reactivity time<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A particular engagement<\/strong> technique, which consists in involving users in order to emotionally connect them to your product or brand, is called Geofencing<\/strong>. It is a marketing strategy that uses the geographical location of users to send them personalized notifications. The average reaction time<\/em><\/strong> for each user between receiving the notification and opening it<\/strong> corresponds to the so-called Reactivity Time. The shorter this time frame is, the greater the interest and curiosity that your users show toward your brand will be. <\/p>\n

If these have very long reaction times or the notifications are ignored, I recommend this reading<\/a> to fix it.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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6. Daily & Monthly Active Users (DAU & MAU)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In this case, it is very easy to understand what we are talking about. The Daily & Monthly Active Users, in fact, correspond to the number of active users<\/em> who open your app<\/strong> <\/em>during a day or an entire month.<\/p>\n

For example, it can be very useful to know how many users have opened your app after a particular event, such as introducing a new collection or sending a notification about a discount can be. By making comparisons between DAUs corresponding to the day of the event and the day before or after, you can see how your users have been affected and develop effective solutions. <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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7. Daily Sessions per DAU<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Okay, a large number of users visit your app in one day. But how many of them come back to you multiple times in a 24-hour time frame?<\/p>\n

The Daily Sessions per DAU, or the number of daily sessions for each active user<\/em><\/strong>, add fundamental information to the simple knowledge of the DAU. When this measure, which is obtained by dividing the number of daily sessions by the number of DAUs, exceeds the unit value, it means that your app is opened several times during the same day. The more accesses within the app, the greater the interest shown by your users and the likelihood that some of them are willing to make a purchase.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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8. Cost per Acquisition (CPA)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In order to analyze the economic return generated by each consumer, we must not forget how much it cost us to attract them. <\/p>\n

The Cost per Acquisition (CPA) represents the average cost<\/em> to acquire each user<\/strong> and it is measured as the total expenditure in a given acquisition channel divided by the number of users acquired through this. If, for example, you spent \u00a3 100 for your ADV campaign on Facebook to invite users to install your app and 50 of them did, your CPA will be 100\/50 = \u00a3 2. <\/p>\n

It is well known that acquiring new customers is always far more expensive than retaining the ones you already have. But somehow you have to start creating them, right?<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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9. Lifetime Value (LTV)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Also known as Customer Lifetime Value (CLV), LTV is the average value each customer generates for your business<\/em><\/strong>. Defining it is very simple, but measuring it is a little less. Three variables have to be considered and multiplied. These are the average conversion value (i.e. the average sales value generated by your products\/services), the average number of conversions (or sales) made in a specific time frame, and the duration of the expected relationship with our customer. The mathematical calculation is very simple, but measuring these variables accurately is not. Defining in advance how long the customer will do business with you, take an interest in your product, and remain loyal to your brand before finding an alternative is very difficult.<\/p>\n

However, I can leave you with two useful considerations:<\/p>\n

1 – If your product\/service is designed to be used in a particular age range (such as newborn products) it is easier to make a rough estimate of LTV.<\/p>\n

2 – In general, the higher your User Retention levels, the greater the chances of each customer\u2019s LTV extending in duration and value.<\/p>\n

To learn more about the importance of this parameter read here<\/a>! <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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10. Average Revenue per User (ARPU)\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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If in addition to estimating the value generated by each user (LTV) you want to know the total value generated by your app, know that you can do it. Just divide the revenue generated by your app by the number of your users, to get the average revenue generated by each user<\/em><\/strong>, or the Average Revenue per User.<\/p>\n

This value, multiplied by the estimated duration of the relationship with the customer, allows you to have a picture of your future economic situation, until there are not significant exogenous changes on the market.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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11. Average cart value<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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The average cart value is the average value of the cart<\/em><\/strong>. The starting question is: how much do your users spend on an order? Adding the purchases of all your users and dividing the total value by the number of orders placed, you will get the answer. <\/p>\n

You will certainly be interested in the fact that the statistics observed an average cart value in apps that are 3 times higher than that on websites. We had already mentioned that mobile had obvious advantages, but now you also have data that prove it \ud83d\ude09.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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12. Return On Investment (ROI)<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Anyone who has ever seen a balance sheet should know what we are talking about. The Return on Investment<\/em> (ROI) gives us a picture of how much our financial efforts have actually been rewarded<\/strong>. <\/p>\n

It’s not that easy to know how much this return is considering your mobile app as a whole: therefore you can unpack it into many small items that are easier to analyze. For example, let’s take an advertising campaign. Knowing how much it cost us (planning, payment of third-party services that published it) and the number of orders made, as conversions made through that campaign, we can know what was the return. The same thing can be done for a promotional campaign carried out via email, whose setup costs will be even lower than in the previous example.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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  • \n\t\t\t\t\t\t\t\t\t\tROI is obtained from the ratio (earnings - costs)\/costs.<\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    And now?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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    Aren’t you curious to know how powerful your app is? Run to measure its performance through the analysis of KPIs!<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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    Share<\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t

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    It is common practice to say that users prefer to use a smartphone to shop online because they always have one in their hands. But theories are not enough for a retailer or a trader who has to plan his own strategies. They need to have data on which to develop their marketing campaigns and […]<\/p>\n","protected":false},"author":1,"featured_media":3874,"comment_status":"open","ping_status":"open","sticky":false,"template":"elementor_header_footer","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"class_list":["post-7076","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discover"],"yoast_head":"\n12 KPIs to measure the performance of your mobile app - Shoppy<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/shoppy.is\/en\/discover\/12-kpis-to-measure-the-performance-of-your-mobile-app\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"12 KPIs to measure the performance of your mobile app - Shoppy\" \/>\n<meta property=\"og:description\" content=\"It is common practice to say that users prefer to use a smartphone to shop online because they always have one in their hands. 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