How do you decide if your app is a ‘success’ or not? Obvious metrics to consider are the number of downloads, clicks, or positive ratings, but these are not necessarily measuring user engagement. Engagement is fast becoming one of the most sought-after qualities in business. Consumers are bombarded with information, products and marketing campaigns all day every day and have become used to tuning out the majority of what they are exposed to. They may have downloaded the app, but if they are not using it, has it really been a success? When your app is released, you should measure user engagement and this guide outlines the key metrics to consider.
Statistical Analysis in App Development
To give your app the best chance of success, a developer needs to become skilled in statistical analysis and interpretation. While the basics are relatively simple to pick up, advanced skills in this area could help you take your operation to the next level of profitability. The Six Sigma approach to business offers different levels of certification in this and several other key business areas, from White Belt, Yellow Belt, Green Belt, Black Belt to Master Black Belt. It is possible, however, to condense this learning via Lean MBB training. The 4-week course is designed for people with no prior experience.
9 Key User Metrics to Analyze
1 Number of downloads
How many times has the app been downloaded and has a marketing campaign resulted in the download? This enables you to invest more heavily in effective marketing channels.
2 Total number of users
The total number of users, including both new and old, enables you to identify which audiences are using your app, including their gender, age, device type and where they are in the world. This helps to inform future development and marketing approaches for your app. You can track users on a daily, weekly and monthly basis.
3 Number of active users
The number of active users tells you how many people continue to use the app after it has been downloaded. Ideally, you should have more active users than new users, as this indicates people are returning to the app to use it after their initial download.
4 Length of sessions
How long do users spend in the app before they close it? Generally, the longer the app is kept open, the higher the level of engagement. You may also look at the number of sessions per day.
5 Session interval
The session interval is how long time has elapsed between the user’s visits. This tells you how ‘addictive’ or ‘sticky’ the app is or isn’t.
6 User retention
User retention is similar to stickiness in that it measures how many users return to the app in a 30-day period. You can compare this with your churn rate, i.e., how many users close the app and never open it again.
7 Screen flow analysis
Screen flow analysis shows you where users may be dropping off of the app and how they use it. You can see where you may have design issues or conversion weak points to streamline your usability and conversion funnels.
8 Conversion rate
If your app includes actionable features like making a purchase, completing a form, signing up to an email list, or leaving a review, you should be tracking the conversion rate. This is the percentage of users who complete that action.
9 LTV or Lifetime Value of a Customer
The LTV of your app user tells you how much financial value they have to you before they stop using the app. This can help you predict your future profits.