Wrong data would result in bad impact. No measuring of data would push your app into stagnancy. Measuring the right data in the wrong way would hamper your efforts of stabilizing your app. So there should be right mobile marketing metrics that can track your app success. In fact, having right mobile marketing metrics is key for all app marketers and mobile app development companies India, USA and across the worlds to build better apps and better engage customers.
Before starting to know app metrics, let’s go into financial metrics that all startups should have a great understanding of:
Key financial metrics are:
• Breakeven analysis
• Breakeven point
• Cash balance
• Fixed vs. variable costs
• Burn rate
• Cash flow
• Cash flow forecasting
Let’s now look into mobile app metrics:
- Lifetime Value of Customer (LVC) and Average Revenue Per User (ARPU) You should have a clear strategy for both LVC and ARPU. When it comes to mobile app, LVC defines how much a user is worth to your company in his/her lifetime usage.
Early-age startups face difficulty to estimate LVC. One easy way to estimate it is studying similar companies in your industry.
On the other hand, ARPU is defined as the total revenue divided by the number of users.
Ultimately, both LVC and ARPU are key to measure the profit your business would get.
- User Retention
Apple App Store and Google Play Store together have more than 5 million apps. But around 85% of users use only 4 to 5 apps on a regular basis. On the other hand, 8 out of 10 users never use the app again 48 hours after installing the app. So it is extremely essential for iOS and Android app development companies India, USA and nook and corner of the world to build their apps in a way that that retain users’ interest.
Most people use only few apps that could be WhatsApp, Facebook, and few others. User retention is really a challenge for most app-centric businesses.
The objective of any customer retention effort is to retain users and along with them, making them use the app or purchase products regularly.
People would download your app by being attracted to your marketing tactics. But the real challenge is making them regular users. This is where push notifications, and app updates come into help.
- CPI and CPLU
CPI means Cost Per Acquisition, whereas CPLU means Cost Per Loyal User.
In definition, CPI is an amount of money your company invests to acquire one user who installs your app. CPI can be derived from a variety of factors. For example, in order to acquire users, you may go for Facebook advertising, app store advertising and many other prevalent marketing channels.
CPI is calculated in the following way:
Total expenditure on ads ÷ total installs = cost per install
Example: $3,000 (ads) ÷ 1000 (installs) = $3 CPI
CPLU is defined as the amount of money you spend to build and retain a loyal user.
A report by the mobile marketing technology company Fiksu DSP can give you the better overview of CPLU and CPI. Here is a glimpse of the report:
The average global CPLU for mobile apps is $2.51 (April 2016), the average global CPI for Android is $2.42 (January 2016) and the average global CPI for iOS is $1.88 (January 2016).
The number of apps is growing at a rapid rate in the app stores, so competition is really juggernaut. But your app’s success doesn’t merely depend on marketing. A successful app is a combination of solid app development and effective marketing. Instability of one side can completely damage the whole app. Make sure you collaborate with an expert mobile app development company in India, US or in your preferred region and get your app developed.
Visit FuGenX for more information.