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3 App Metrics That Matter

Writer's picture: Chris WitthoftChris Witthoft

So you have taken your dream and turned it into a working APP which now goes out to the world and helps solve a problem. You're excited and load up those marketing campaigns, allocate ad budget, do a few blogs and maybe a webinar or two, and when you look again you just are not sure what's working and what you should be looking at to measure success.


Well you're not alone, so many App business owners find themselves in this place, having access to heaps of data but not knowing what it should be used for and how to interpret it.


This post is here to help you, get some direction and prioritise what really matters from all this data, so you can focus on building a successful Mobile App business.


If you are looking for additional metrics, click on the link below to access my data sheet with even more App Metrics that Matter.



App store Conversion metrics


You spent some time with your designer to produce a set of attractive preview images for your App, and spent hours compiling the perfect overview description describing your App and its benefits. Now it's crunch time...just how well is this working?


By calculating the conversion rate between your Page Previews and Downloads you'll get an indicator if your App Page is doing the job.


Page Preview / Downloads = Conversion Rate

What should you be aiming for? Well it depends on your industry but as a rule of thumb across the industry average a good page should convert 20% of its visitors


Cost of Acquisition


It's crucial to know how much it is costing the business to acquire a paying customer, sure in the beginning downloads are great to start gaining momentum but sooner than later their needs to be financial traction. Accurately measuring how much it costs you to get a paying user onboard will help in determining your pricing model, break even status and overall goal and budget setting.


To calculate the cost of acquisition you'll need to take your marketing spend and divide that by the number of paying users to get the right figure


Marketing Spend / Paying Users = Cost of Acquisition

Calculating ROI


It is beneficial to understand the results from your marketing efforts for a specific campaign or overall marketing initiatives. It can be a bit tricky to wrap up these figures and drill down to the exact decimal point but in principle these guidelines can help you get there.


The first step is you will need to define what was the commercial gain for the business from the campaign. The second step is to calculate the costs of the campaign which achieved these results, taking into account ad spend, software expenses and design costs.


The debate you will need to be aligned on in the business is what is the commercial gain is it revenue, gross profit, net profit etc?


Being able to associate a single campaign's success to a sale can be tricky. The question can be raised that through tracking last click attribution this purchase was made via your newsletter BUT how did the Facebook campaign which launched last week motivate the user to purchase too. This is where utilising control groups to single out campaign ROI will become valuable.


To calculate ROI you need to subtract the gain from your investment from the cost of your investment and divide this by the cost of investment. This figure will be your ROI.

For example (£100,000 gain from a campaign – £80,000 cost of that campaign) / (£80,000 cost) = 0.25, which means you have a 25% return on your £80,000 investment


(Gain from investment – Cost of investment) / Cost of investment
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