When you want to evaluate how your website is doing and what needs to be improved, you know which metrics you need to look at. You know the ones that are more important as well as the ones that don’t have a lot of meaning. However, in order to evaluate your mobile app, you need to use other metrics. Why? When you have a mobile app, your goals are different from when you have a website. You want to make sure that a lot of people download it in the first place and then install it. You want to make sure that people continue to use your app as well as buy whatever you are offering them.
Mobile traffic is increasing, with predictions pointing to a continued growth year after year. Despite the fact that not everyone feels comfortable buying from a mobile app, the truth is that a lot of people are already doing it and the numbers are increasing.
So, it’s incredibly important that you have some sort of mobile app analytics just like you do on your website. But what kind of in-app analytics should you have? Better yet, what are the 5 key metrics for mobile app tracking that you absolutely need to focus your attention on?
#1: Average DAU & MAU:
DAU (daily active users) and MAU (monthly active users) are a very important metric that needs to be included on your in-app analytics. Simply put, they tell you how many unique users you had that were active for a specific period of time – this is different than the number of downloads your app has.
In other words, DAU and MAU numbers tell you how often your users open your app. It refers to each unique user using your app – not the number of sessions. It is a measure of overall audience engagement on your app. The higher the number of your DAU or MAU, the more faithful your user base and therefore, directly impacts the value of your app.
#2: User Flows:
A mobile app usually has multiple screens. And the way a user moves from a screen to another is one of the most important key metrics for mobile app tracking.
As an app developer, you know the purpose you want to achieve with your app. You know the end point that you want your users to reach and you want your users to reach that point as easily and quickly as possible. When you understand how users are interacting with the app, you can decide which screens are essential and how the customer journey can be optimized.
In today’s world, where apps are trying to capture user attention, the difference between one app and the other is usually user experience. The user should not be confused in the app but instead the flow should be smooth and intuitive.
In an extremely cluttered marketplace like the PlayStore and AppStore, mobile phone real-estate is valuable and hard to retain. According to a recent statistic, 1 out of 4 users will abandon or delete an app after just one use and 3 out of 4 users will delete the app in one week from download. If you are a company focused on user acquisition, this is worrying.
Although a steadily increasing user base is a sign of growth, it’s user retention that will define your app’s success. According to Bain and Co., a 5% increase in customer retention can increase a company’s profitability by 75%. Another study by Gartner Group statistics shows us that 80% of your company’s future revenue will come from just 20% of your existing customers.
It also makes sense to focus on retaining the user you have already acquired rather than only pay attention to gathering new users who may or may not stick around.
In order to increase retention, you should have an effective customer retention program in place to identify, track and run customized promotions for those customers who are likely to become loyal customers. It all comes down to engaging your users and running relevant, tailored promotions.
#4: LTV (Lifetime Value of Each User):
Understanding the Lifetime Value (LTV) of each user is crucial to successful mobile marketing. LTV is a measure of the revenue that a user has generated spanning the entire lifecycle of the user on your app.
LTV can be leveraged to optimize maketing campaigns as marketers gain insights into what is happening after install, along the user lifecycle and how it impacts the overall ROI of the marketing channel.
#5: User Acquisition Attribution:
Every marketer wants to measure the effectiveness of their marketing campaigns. You would like to know which marketing channel is working best for you and to which source can you attribute maximum reach.
For websites, cookie-based tracking is a popular tracking mechanism. To know which users came from which source, UTM parameters are appended to the URL to track performance of each channel.
For Mobile apps, attribution analytics plays an important role in tracking the source of user acquisition. It is vital to partner with a mobile ad tracking vendor and integrate it into your mobile app to accurately attribute user acquisition and optimize your marketing campaigns accordingly.
The above 5 metrics will give you the power to enhance the ROI on your marketing campaigns. Using a platform that has the ability to track and attribute the above parameters is key to having an effective mobile app marketing strategy.