CEO and Co-Founder of TheoremReach
Whether you’re getting ready to launch a mobile app or you already have one on the market, the importance of analytics has never been more important.
Many people don’t realize is that downloads does not equal success in the app ecospace. Even if you get 10,000 people to download your app, within 1-2 days around 7,000 of those people will have either deleted your app or will never open it again.
What does this have to do with analytics? EVERYTHING!
You need to know where in your app people get stuck – can they not complete the login? Is it too difficult to figure out the user interface? What is causing users to leave the app and not come back.
Additionally, it’s very important to know the LTV or lifetime value of a user. In today’s crowded app marketplace it’s costing more and more to acquire users, whether via ads, video ads, paid downloads, etc. As it continues to cost more to acquire each user, it’s very important to know that you’re making enough to cover your costs. What’s more important though is how many of those users are good users – or users that will continue to engage in your app and more specifically – engage in activities that help you monetize them so you can keep the lights on.
If you’re just getting into the world of mobile analytics there are a few core metrics you can start with:
Fortunately, there many different tools available to help you answer those questions! Here are a few of our favorite measurement tools:
For most developers, processing and handling all of the data available simply isn’t feasible. This is why many major studios have teams dedicated specifically to analyzing the data.
For the rest of us, we can still find value in the data if we take the right approach. Namely – we need to set specific goals and KPIs (key performance indicators) that will allow us to measure how we are doing on those goals.
Here are some examples of potential goals:
By having goals that are more specific, you can setup tools and analytics that allow you to focus specifically on your goals.
Next you need to define KPIs that help you track your goals. Let’s say I want some KPIs to help me track my first goal of increasing the lifetime revenue per user:
Let’s say we’ve decided that we want to increase average revenue per engaged user from $0.10 to $0.20 (or more!).
First we want to take a look at our current app. As an example, let’s say we have an app that let’s users text and call for free (assuming they have minutes available). When users run out of minutes, they can make an in-app purchase to get more minutes.
By using our basic analytics tools we’ve determined that 10% of our engaged users or ~3/30 engaged users or 3/100 downloads make a purchase for $1 for 10 minutes.
There are several things we can do to see about increasing revenue:
We generally recommend adding and testing all of the above campaigns. It’s especially powerful to give users many different options to choose how they earn their content whether by making an in-app purchase, by completing a survey, watching a video, or downloading another app. When a user feels they have options and are in control of how they earn their content, they do so.
For each of these that you add, you’ll want to utilize the appropriate analytics step. This will help you to track revenue per user. You’ll also want to try different user interface implementations of how you display and advertise the different options to earn revenue. By testing different combinations you should be able to increase your revenue from $0.10 to $0.20 and beyond!