9 Dec 2015

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5 Metrics playing a crucial role in app marketers’ life

Earlier, it was only analytics helping marketers to know about their app marketing strategies up to certain extent. But now, plenty of data entered the market that includes analytics of everything including What, when and where. Downloads, clicks, ratings, reviews, landings, user behaviour – it includes all.


The days are gone when downloads and ratings were the only methods to measure app’s success. Now, the success factor relies on many other metrics. Today’s metrics is something that app marketers can’t live without. These metrics provide app’s insights, performance level, user behaviour and the list is endless – from which I have mentioned some important one playing a crucial role in app marketer’s life.

1. Average Revenue Per User (ARPU)

Average Revenue Per User (ARPU) is a total amount generated by app from its total number of active users. (Wiki Definition: total revenue divided by number of subscribers).

For e.g. An app generates $5000 per month and it has total 200 active users

It’s ARPU = total revenue/ total customers = 5000/200 = $25 per user.

ARPU figures are important for app marketers as they portray a clear vision of valuable customers’ spending money for app. These figures are also helpful in other metrics too. When ARPU combines with Cost Per Loyal User (CPLU) and Retention rates, it generates accurate results of app success.

2. Cost Per Install (CPI), Cost Per Loyal User (CPLU)

Cost Per Install (CPI) is calculated on the basis of total number of paid installs generated from paid advertising campaign.

Cost Per Loyal User (CPLU) is the cost of a user landed from paid campaigns. A loyal user equals to the user who has open your app at least 3 times.

CPI, CPLU and ARPU are combined together to calculate Return on Investment (ROI).

3. Engagement

Engagement doesn’t need a definition as the single word depicts everything. Engagement is something for which app is actually made. That’s why app marketers care for this metrics the most. Engagement metrics represent a better picture of how users interact with app (whether they like app, hate it or just keep it in their smartphone). It lets you understand user behaviour, so that you can find most appealing content and unnecessary elements within the app. 

4. Crash Reports

Crash reports are as important as user experience is. You can say it is proportional to user experience. App marketers must know how many crashes their app has. Frequent crashes result into an app failure – no matter how much great, entertaining, engaging or resourceful your app is. All your investment from development to marketing will be a ruin, if your app has crashes. To save your investment and app, you need crash reports to heal them as soon as possible.

5. Retention

Retention is: how many users return to your app after a week, month or year. These metrics illustrate the value of your app or the come-back desire of your users.

Retention rate indicates the success measure of your app and current user-base. Apps with millions of downloads can’t measure the success as we don’t know whether users are returning back or not. But with retention rate, we can know whether users are coming back or not – If they are coming back, which things are catching their attention the most or if not, which things are disturbing them the most. One can improve its app a lot by improving liking features and by eliminating unnecessary features.

Metrics give more control over app and users. It helps generating more revenue if taken care properly. It also increases the life span of app in users’ smartphone. Hence, they are the importance part of mobile app marketing campaigns.

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