Gone are the days of measuring an app’s success through downloads and ratings. Instead, here are five important mobile marketing metrics every marketer should know inside and out.
1. Average Earnings Per User (ARPU)
Average Revenue Per User is the amount of revenue each of your active customers contributes (on average). (Read more on Engagement for some advice on defining what “active” means in the context of your application).
Are there important criteria?
ARPU varies widely by application category and revenue model, making comparisons somewhat redundant. However, there are rough estimates for the different app categories and mobile revenue models:
Source: VisionMobile Outside of apps that are worth enough to justify subscription fees and apps generating over $50,000 in revenue per month, the ARPU is pretty flat at around $0.04 per active user per month (as of 2020) or $0.48 per active user per year.
Why is this important?
Once you have calculated the average revenue per user, you can use it along with two other mobile marketing metrics included in this guide to draw meaningful conclusions about the success of your app:
Used with cost per loyal user (CPLU)ARPU can be used to set the perfect budget for mobile marketing money and advertising spend. Marketing dollars are usually well spent as long as the ARPU is greater than the CPLU (that is, as long as mobile customers generate more revenue than the acquisition cost).use while retainingARPU can be used as a proxy for life expectancy value (LTV). If an engaged user generates $0.10 per month and is typically held for a year, for example, you know that the expected lifetime value of that person is $1.20.
2. Cost per install (CPI), Cost per loyal user (CPLU)
CPA measures CAC for customers who installed your app in response to seeing an ad (tracking paid installs instead of free installs).
The derived metric for cost per loyal user considers the cost of acquiring an active user (defined here as anyone who runs your app at least three times).
Are there important criteria?
According to 2021 data from ironSource, the average iOS app in the US scored a CPI of $2.37; The average US Android app scored a CPLU of $0.44. However, as was the case with ARPU, this benchmark data should be taken with caution, as CPLU and CPLU vary widely by app store category and revenue model.
Why is this important?
As mentioned earlier, it is best to use CPI (and derived CPLU) in combination with ARPU to calculate ROI for your marketing efforts. For marketing to make sense, your ARPU must be higher than your CPLU. While it may seem obvious, advertising spend is often unjustified when it comes to mobile apps, forcing mobile marketers to really know these two metrics.
3. Share
Unlike the other mobile marketing metrics listed here, there is no standard definition or formula for engagement. Engagement can only be determined in the context of the individual app and its mobile marketing strategy.
What was said, Commitment is often mentioned in terms of phenomena associated with wanting to use mobile applications for a longer period and with greater frequency.
Engagement itself is not a metric, but there are several concrete metrics that go into the engagement data set:
Session Duration: How much time does a customer typically spend on your app in one session?Session interval: How often do customers launch your app?Presentation screens for each session: How many parts of the application (screens) does the client run in one session?Conversion rate for events: What percentage of customers take x-action in the application?Interactions: What percentage of customers receive a message and are invited; What percentage of customers respond to a message or prompt?inscriptions: How many customers have signed up to receive additional alerts or notifications?Cancellation of subscriptions: How many customers require fewer alerts or notifications?
Are there any important benchmarks?
According to Apptentive’s 2021 Mobile App Engagement Benchmark report, the average app has 26% of its customers engaged. Of those we interacted with, 92% responded to the brand.
There was also a 50% increase in the number of surveys sent from 2019 to 2020. COVID restrictions driving mobile sharing was a potential factor in the increase, as well as mobile teams becoming more comfortable talking regularly with consumers.
Why is this important?
Engaging customers are the bread and butter for the success of your mobile app. Not only are engaged customers more likely to bring in more referrals and give your app some love in the form of a great review on the App Store, but they are more likely to be more loyal and profitable.
In combination with mobile analytics software such as Google Analytics, engaged customers can be “aggregated” (segmented and tracked over time) to reveal trends and actionable insights into customer behavior: How does engagement change – does it happen over time? What actions lead to higher participation? How long do customers stay in touch?
4. Love Ratio
Unique to apps that use the Apptentive Love dialog, this metric begins with a one-question in-app survey for mobile customers: “Do you like this app?” “
Customers have three options to respond: say “yes,” “no,” or ignore the prompt. Love percentage is the percentage of customers surveyed who answered “yes” instead of one of the other two options.
Are there any important benchmarks?
In 2020, 93% of all consumers invited by Love Dialog answered “yes” or “no” rather than closing the claim. On iOS, the number was 97% higher, compared to 84% of consumers on Android. Love Dialog collects such high response rates primarily because of its simplicity. People are willing to answer short, direct questions and share their feedback when prompted proactively in a mobile time.
Let’s focus on the people who answered “yes”. In 2020, 65% of consumers surveyed answered “Yes,” they liked the brand. These quick and positive responses are a great way for brands to regularly take the emotional pulse of their customers, without requiring them to leave the app for feedback or walk away from the app’s intended use. It’s also a much better indicator of consumer happiness and potential life value than lagging scales like NPS.
Why is this important?
Love percentage is the easiest and most accurate way to measure overall customer experience. By requiring minimal work from the guest client, this prompt doesn’t actually see an opt-out, allowing you to hear a large sample of your active clients in a short amount of time.
Compare these results with your app store ratings (usually received from less than 0.05% of your customers and misrepresented by those who have an extreme opinion about your app in one way or another and are therefore more likely to take time to complete a review), and it is clear that the love percentage They provide a more representative indicator of your customer experience.
Love percentage is also a metric that can be tracked over time and version history to measure the impact of additional app updates on the customer experience or use it as a segmentation tool.
5. Keep
Loyalty is a measure of customer attrition: How many customers are still actively using your app after one week? Month? year?
Again, calculating this metric depends on your unique application and mobile marketing strategy. Before calculating, you need to determine the criteria for the appearance of a loyal customer. Is it someone who launched your app in the last 30 days, or someone who uses your app every day?
Are there any important benchmarks?
How brands define “successful” retention depends a lot on the length of time that is being measured. Many mobile teams focus on short-term 30-day retention as a key indicator of success. Less focus on 90-day retention, and very few prioritize annual retention. However, you need to look at all three metrics, especially in the long run, in order to understand how retention affects customer morale and your product roadmap.
For 2021, here are the three main order retention criteria you should target.
Why is this important?
Knowing your retention gives you a much better indication of the success of your app and your existing customer base. Your app may have 100,000 downloads, but how many of those people are actually active?
With CPIs and CPLUs constantly increasing, mobile marketers can also save significantly by switching from acquisition to retention while driving the same growth. (Learn more about the benefits of retention marketing.)
Put your mobile marketing metrics to work
Understanding the five most important metrics for mobile marketing gives you control over five incredibly powerful factors for increasing your app’s revenue. you can now:
Increase revenue by delivering more value to each customer and thus increase ARPU Increase revenue by lowering cost per loyal user by designing more targeted and effective marketing campaigns Increase revenue by engaging more customers and thus increase monthly active users Increase revenue by creating an app they love Customers, with higher love per update Increase your profits by designing your marketing strategies around retention rather than acquisition and using your retention as a signal of confidence in how your brand knows its customers.
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