Which KPI Should I Use For My Mobile App Marketing Plan?<\/h1>\n
When it comes to the task of marketing a mobile app, there is certainly no shortage of statistics, ratios and other performance indicators available with which to analyze your app marketing strategies, from advertising, to organic social & app store optimization to even your in-app user experience. All of this choice begs the question:<\/p>\n
Which metrics are the\u00a0<\/span>best<\/span><\/span>\u00a0to use for\u00a0<\/span>my\u00a0app marketing strategy?<\/span><\/p><\/blockquote>\n
The short answer is that it depends, but the good news is that the process of selecting the right metric for your app marketing strategy is pretty straightforward. Read on to learn about:<\/p>\n
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The difference between\u00a0metrics<\/em>\u00a0and\u00a0KPIs<\/span><\/li>\n
Choosing the right KPI for your app<\/li>\n
Choosing the right KPI for your app marketing strategy<\/li>\n<\/ul>\n
Metrics vs\u00a0KPIs<\/h3>\n
Metrics<\/span>\u00a0are performance indicators, or data points that you use to figure out what\u2019s going on across each of your channels and segments. Just like squares and rectangles, every KPI is a special kind of metric; however not every metric is a KPI. Here are some examples of regular metrics for app marketing strategies:<\/p>\n
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Impressions<\/span>\u00a0(a count of each time your ad or post is shown)<\/li>\n
Reach<\/span>\u00a0(a count of the unique number of people who see your ad or post)<\/li>\n
Clicks<\/span><\/li>\n
Quality<\/span>\u00a0or\u00a0Relevance Score<\/span>\u00a0(an aggregated measure of an ad\u2019s relevance to the users it is shown to, established by platforms like Facebook, Adwords or Bing Ads. These scores are based on an advertiser\u2019s content and ad user engagement; FYI these scores can impact your ad reach and also how much you pay to show ads)<\/li>\n
CPM<\/span>\u00a0(cost per thousand ad impressions)<\/li>\n
CTR<\/span>\u00a0(click through rate)<\/li>\n
Cost<\/span><\/li>\n
CPC<\/span>\u00a0(cost per click)<\/li>\n
Average Screens Per Session<\/span>\u00a0(can sometimes be a KPI if tied to revenue)<\/li>\n
Average Sessions Per User<\/span>\u00a0(can sometimes be a KPI if tied to revenue)<\/li>\n<\/ul>\n
KPI<\/span>\u00a0stands for\u00a0key<\/em>\u00a0performance indicator, and is a recognition reserved only for the particular metric(s) that is\/are most important to your mobile app marketing plan, depending on your situation and goals. The purpose of a KPI is to help you be decisive and prevent analysis paralysis, which is vital to avoid when marketing apps and can happen when you have multiple metrics telling you different things. Here are some examples of KPIs for app marketing strategies:<\/p>\n
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New User Referral rate<\/span>\u00a0How many new users does each of your acquired users refer?<\/li>\n
ARPU<\/span>\u00a0(average revenue per user, which can take into account revenue attributed to ads, in app purchases, paid downloads, subscriptions and any other applicable source)<\/li>\n
LTV<\/span>\u00a0(lifetime value of a user\/customer, which takes ARPU one step further into considering things like churn rate, referrals and repeat purchases)<\/li>\n
D<\/span>AU\/M<\/span>AU (the average number of daily or monthly active app users)<\/li>\n
CAC<\/span>\u00a0(customer acquisition cost\u200a\u2014\u200ahow much you pay to acquire each new customer\/user)<\/li>\n
Churn rate<\/span>\u00a0(a measure of how many users stop using your app after a period of time\u200a\u2014\u200athere are many ways to calculate churn rate, depending on how complex or accurate you want to get)<\/li>\n