Some marketers may be pleased to merely see their app available to download. Others are relieved with any number of installs. But these types of actions are just the beginning. A well-planned marketing campaign is often the difference between a mobile app flourishing or being left behind. A plethora of ratios, formulas, tools, and programs are at your fingertips when it comes time to market a mobile app. But like anything, some methods work a lot better than others, and without tracking relevant key performance indicators, you won’t know the effectiveness of your campaign.
KPIs are especially important in today’s app marketing landscape because more ways exist to reach new consumers at scale than ever. One example is programmatic ads, in which algorithms determine the ad placements and creatives that are shown, making it easier to target individual users with more personalized ads.
But regardless of how you’re marketing your app, here are three KPIs to measure your success or failure.
Retention rate essentially measures the loyalty of users. This is important because people who keep coming back to an app are probably going to stick around for the long haul, making them more likely to make related purchases and refer other users.
The retention rate is the measure of how long a consumer uses an app. Maintaining a high retention rate is tricky because a lot of users stop using apps after download. On average, just 4-5 percent of people use an app 30 days after install.
Many strategies exist to improve retention rates, including using advanced targeting platforms to tailor advertisements to specific demographic that might be more suited to use and install a mobile app.
Sitting back and watching app uninstall numbers increase or active users drop can be a sobering feeling. However, these trends can also provide a lot of insight into what you’re doing wrong. Monitoring churn rate, which looks at the number of users who’ve quit or stopped using your app over a period, can illustrate whether your app has bugs, bothers users too much with push notifications, has a complicated sign-up process, uses too much battery, or any number of unwanted user effects.
It goes without saying that you want your churn rate to be lower than your growth rate, but in every case app marketer can collect feedback from users on why they stopped using the app. Curbing churn rate is crucial for app marketers, not only because it leads to more revenue at present, but it increases the lifetime value of your users.
Session Length & Intervals
People who install an app, jump on for a few minutes and leave, are probably not getting the full experience the app offers.
Session length measures how much time people spend on your app. Session interval is all about how often people visit your application. You want session intervals to be as short as possible since this means people are coming back for more.
Users who are spending a lot of time on an app are more likely to make purchases. It also probably means that the marketing campaign is well aligned since the app’s features and functionality are meeting user expectations.
You can improve both of these metrics by tailoring your ad campaigns towards demographics that are most interested in the app, increasing the chance they’ll open it more often and for more extended periods of time.
Don’t be afraid to dive into the wide world of user data during an app marketing campaign. While there are many KPIs out there to help you measure the success or failure of your app marketing campaign, the above metrics usually give marketers a clear idea about what needs to be modified and improved for the future.
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