The List of indicators And measurement methods:
Average Revenue per User (ARPU)
- Average Revenue Per User (ARPU) measures the average revenue contributed by each active customer. ARPU varies significantly by app category and revenue model. While specific benchmarks are challenging due to this variation, ARPU typically hovers around $0.04 per active user per month or $0.48 per active user per year.
- Why it matters: ARPU, when used in conjunction with Cost Per Loyal User (CPLU) and Retention, can help optimize budgeting and provide insights into customer lifetime value.
Cost per Install (CPI), Cost per Loyal User (CPLU)
- Cost Per Install (CPI) and Cost Per Loyal User (CPLU) measure customer acquisition costs and the expense of acquiring active users. Benchmark data from 2021 indicates an average US iOS app saw a CPI of $2.37, while the average US Android app saw a CPLU of $0.44.
- Why it matters: When combined with ARPU, these metrics help calculate the return on investment for marketing efforts, ensuring that marketing spend is justified.
Engagement
- Engagement metrics, such as session length, session interval, app screens per session, and conversion rates for events, provide tangible insights into customer interaction. According to the APP Mobile 2023 Mobile Customer Engagement Benchmark report, the average app engaged 26% of its customers, with 91% responding to the brand.
- Why it matters: Engaged customers are more likely to drive referrals, provide positive reviews, and exhibit loyalty and profitability.
Retention
- Retention metrics measure customer churn, providing insight into how many customers continue to actively use an app over specific timeframes. Understanding retention is crucial for evaluating an app’s success and current customer base.
- Why it matters: Retention provides a better indication of the app’s success and customer base, allowing marketers to focus on retention strategies over acquisition.
Uninstalls, not installs
- While installs are an acquisition metric, uninstalls are a retention metric, offering insights into customer discontinuation trends. Understanding uninstalls provides evidence of an app’s long-term sustainability.
- Why it matters: Uninstalls offer a clearer picture of customer retention and provide valuable information for app improvement and customer engagement.
Putting these mobile marketing metrics to work provides control over levers for increasing app revenue and customer satisfaction. Understanding and acting on these metrics enables app marketers to optimize budgeting, enhance customer engagement, and drive retention and profitability.
