Smart app developers know that developing and launching an app isn’t enough to make an app a success. The real deal is to bag success after the app is released and to justify the ROI of an app. For which, a heap of metrics needs to be considered, or else, the app is destined to fail. To prevent such failures, a developer needs to delve into the metrics that decide the profitability that can be gained from an app.
Let’s focus on the four major segments that are responsible for making an app look like a dime or a diamond below:
1. Performance Metrics
Apps are popular for their swift performance, and if an app lacks basics, it’s of no use. Performance metrics include app latency, app API latency, app crashes, network errors, app load per period, etc.
Network errors
Your app may encounter network errors if it needs the support of network service. These errors cause low responsiveness and app crashes. Network errors majorly occur due to HTTP issues or service provider’s end.
App crashes
You may also call it an app’s nightmare. While average app crash rate is 1-2%, it also depends on the type, size, and usability of an app. App crashes not only cost lost of users, but it also dents the rating on the app store.
App load per session
These metrics relate to the app’s performance when it has an optimal load. It is usually observed via the number of calls or transactions in a specific time period. Make sure your app works well with sudden changes that affect the size and load of the app or else, prepare for the massive drop in app downloads.
API latency
Modern apps leverage various services, and API’s and API latency is commonly known as the time consumed between a request reaching the response along with resolution of the query. An ideally optimized response time is one second.
2. Demographics, usage, and user metrics
Every app is build focusing on gathering more users and to gain user base, an app should be user-friendly, sound lucrative to its users along with creating value for them. These metrics depict user behavior, count and their demographics.
Geographical metrics
Apps have their user persona, and they are developed accordingly to target a particular region, a country or state. Geometrics enable you to see if the app is getting the right traction, users and usage. Using the geographical data, you can easily spot location based issues.
OS and device metrics
Cross-platform apps are developed to be used on various OS and devices. This data metric is crucial to resolving issues of apps specifically pertaining to specific devices or OS. Additionally, you’ll get insights about your app’s market share on OS and devices.
Daily or monthly active user count
The user base of every app is divided into a daily and monthly count of active users. This metric ensures the right visualization of user cap and depicts whether the user count is inclining, declining or stagnant. Accordingly, with this metric, you can fix issues on the broader scale by creating strategies involving user attraction.
3. App engagement metrics
App engagement is one of the most vital metrics where you’ll be evaluating the number of sessions, intervals between them and retention rate. This metric helps improve user interaction along with enhancing the UI/UX of an app to increase user engagement.
Session length
Session length is the time interval between the opening and closure of an app in a single session. It indicates the overall session of a user and it's visited app screens that eventually helps in improving particular elements of an app involved in the session.
Interval between sessions
The frequency of users opening your app is crucial. It shows how valuable your app is to them and this metric depicts the interval between the first and forthcoming sessions initiated by users. This set of data reflects the open rate of your app including the element of a user using your app repeatedly.
Retention rate
You may have downloaded so many apps but didn’t use them or never opened them for the second time. App retention rate is the metric to gain spot-on insights about improving your app’s features, visual screens, user engagement, app value, etc. It also helps you in creating targeting the right audience with the depicted app retention user data.
4. Business metrics
Ultimately, apps are developed to rake in money, revenue and most importantly, profit. Business metrics include user acquisition cost, abandonment rate, revenue per transaction, lifetime value and on top of all, the star rating of an app.
Acquisition cost
Users may find your app via distinctive mediums including word of mouth, ad campaigns, app store search, in-app referrals, affiliate marketing, etc. This set of data empowers you to see the channel by which user is coming on your app. Also, it helps in deriving the behavior of a user after that it opens an app. Both of these metrics enables you to sum up the user cost per acquisition.
Abandonment rate
It’s not necessary that all transaction reaches to the point of completion. App crashes, lack of performance, poor UX/UI, and users changing their minds are some spotted reasons why app transactions are abandoned. This metric helps in identifying the pain-point of user journey that is to be resolved.
Transaction revenue
Apps that support transactions leverage this metric. It shows how much of revenue an app is driving in and more importantly, by what features or services. By this way, you can spot elements raking in more revenue and enhance them to gain more money.
Lifetime value
Everything has a value attached to it, and the same is the case with an app. The lifetime value of an app is measured by calculating its user base, rating, cost per acquisition, revenue that it generates, daily and monthly income value. This metric depicts all critical features of an app and their worth to ease you out in calculating its valuation.
Additional KPI
You have become well aware of the key KPI’s that decide the fate of an app. There's another KPI to mention that is common but the most important, that is the ratings received. While you might think that getting a five-star rating for an app is tedious, here is the spoiler; if you can get the above mentioned KPI’s entirely on point, your app is all set to shine brightly with star ratings. Now is the time; start evaluating your app and fetch the right results.
CONCLUSION
Every business needs an app developer, who understands the importance of all the above-mentioned metrics and knows that though it would be difficult to ace every metric for an app, there is a certain balance to be maintained among these metrics to assure positive ROI for the businesses. In need of such developers? Look nowhere else, just go through the list of top mobile app development companies curated by GoodFirms and pick an app development partner wisely as well as confidently.
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