10 Essential Mobile App KPIs and Engagement Metrics

Addevice
5 min readMay 17

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We live in an era where one cannot fathom their life without a mobile app. We all have apps on our smartphones. There are millions of apps in the market and therefore the competition is rather fierce. To keep up with the market competition, businesses need to measure and analyze key performance indicators (KPIs) and engagement metrics. In this blog post, we will talk about 10 mobile app KPIs and engagement metrics that all businesses should consider for their app’s performance. Even at the stage of Minimum Viable Product development, there should be a prior look to these indicators.

1. Retention rate

The retention rate measures how many users return to the app after the first visit. The measurement is done in percentages. This is an important indicator because if you lose customers just from their first visit, your success will be at risk right away. A low retention rate means that users did not have the best app experience and did not find your app useful.

2. Churn rate

The churn rate is an indicator of how many customers stay loyal to your app. It is a percentage of those who stop using your product or services over a period of time. This metric is an important mobile app KPI and is used to measure customer satisfaction. If with retention rate higher percentages are a good indicator, in this case, a high percentage points to problems with customer service and product quality.

3. Monthly active users

Monthly Active Users (MAUs) is a metric to measure the percentage of those users who interact with your app in a given month. For example, they may post content, send messages, or make purchases. MAUs are typically counted at the end of the month and are a good indicator of the health of a digital platform. This indicator is used to track changes in user behavior, evaluate the impact of a new product or service, and keep track of the competition in the market.

4. Daily active users

Daily active users (DAUs) metric measures the number of users who engage with your app daily. For example, a user may log in or perform a specific action on a given day. This metric is a good indicator of the overall app’s health. It is used to track the growth and popularity of the app. It shows the consistency of your app usage and can help identify user behavior patterns. Naturally, this can lead to increased revenue through in-app purchases or advertising. When businesses track DAU over time and compare that indicator with industry benchmarks, they become able to identify trends and make data-driven decisions which eventually leads to improved engagement and retention.

5. Sessions per daily active user

This mobile app KPI measures the number of times a user opens your app in a day. It helps businesses to understand how frequently users are interacting with the app. Naturally, higher sessions per DAU metric indicates high user satisfaction. One way to improve this metric is to provide more personalized content. This can be done by using data analytics and machine learning algorithms. Businesses can analyze user preferences and provide tailored content.

6. Stickiness

Stickiness is a metric that measures customer engagement over time. It shows how well a product or service is able to retain its customer. A high stickiness rate is a good indicator. It means that customers are using it more often and have a high loyalty rate.

Stickiness is calculated by dividing the number of active users by the total number of customers. For example, if you have 100 customers and 40 of them are actively using your product or service, then your stickiness rate would be 40%.

7. Average session length

Average session length measures the time that a user spends on an app during a single session. The longer a user stays on an app, the more likely it is that they are finding the app valuable. It also indicates that they are spending more time exploring various features. This can be an important source of information for businesses to know what content interests the users most.

8. Cost per acquisition (CPA)

Cost per acquisition measures the cost of getting a new user or converting a lead into a paying customer. CPA is calculated by dividing the total cost of the campaign by the number of customers. This metric measures the effectiveness of the marketing efforts. A low CPA is a good indicator, It means that the campaign is successful and the cost per customer is low.

9. Customer lifetime value (CLV)

Customer lifetime value measures the total revenue generated by a user in the course of their engagements with the app. CLV measures the amount a customer spends per transaction, the number of purchases made, and the length of their relationship with the app. It is possible to calculate the return on investment with CLV. A high CLV indicates customer loyalty. This is an important mobile app KPI to increase customer retention and lifetime value.

10. Return on investment

Return on investment (ROI) measures the amount of revenue generated by an app relative to the amount spent. It is an indicator of the profitability of the app.

There are 3 types of ROI. One type of ROI is the revenue generated from the app, like in-app purchases or subscription fees. Another type is cost saving. Here streamlining the processes or reducing customer service costs are considered. A third type of ROI concerns long-term revenue growth like customer satisfaction and loyalty.

To improve ROI, app owners can use data analysis and user feedback to track user behavior and identify features that are undervalued. Such data-driven decisions can enhance the app’s productivity and efficiency.

Wrapping up

Tracking the mobile app KPIs and engagement metrics is a vital step for any mobile app business. It can have a critical impact on the app’s success. If you ask me what’s the most important among these mobile app KPIs, I would say the final result — the ROI. So, have that in mind because this metric is the final indicator of your app’s profitability.

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