Tracking the right metrics and events within your app can reveal ways to improve the user experience, increase engagement, and spend money wisely on app marketing efforts. At least that’s what Miles Branman says in a recent blog post on the Localytics website.
Miles is a Digital Marketing Specialist at Localytics and in his post he says, “App marketing is a powerful way to immediately impact your revenue, but the foundation for successful campaigns come from strong app analytics.”
He talks about three critical app analytics metrics and how they can help you grow your app revenue.
His first metric deals with acquisition. “Acquisition tracking follows the number of users who download and install your app from a certain channel, be that organic search via app store, word-of-mouth, paid campaigns or in-app referrals. This metric not only lets you see where users came from, but how they behave once they start engaging with your app.
“With acquisition tracking, you can find the ROI of each app marketing campaign, tied to the lifetime value of your acquired users.”
The second metric on Miles’ list is retention. “Retention is measured as the percentage of users who return to your app based on the date of their first visit. Retention, or ‘cohort,’ tracking highlights your most engaged – and valuable – users, creating better targeting opportunities and personalization of the app experience.”
“Retention is more than just an app health metric; it’s a viability measure for if your users will stick around long enough to contribute value.”
Finally he mentions lifetime value. “Lifetime value is your primary revenue metric, representing the value of the app and how much each app user is worth during his or her lifetime. Lifetime value is basically the answer to the ROI question for acquisition; by following acquisition sources all the way to average user LTV, you can determine which sources are working, and which need tuning.”
Miles goes into much more detail than we can here but you can read his entire post here.