Why Mobile App Health Matters
In today’s heavily saturated world of mobile apps, the competition is intense. That is why it’s essential to create an app that attracts visitors, runs smoothly, and also meets the KPIs for your business. In order for your app to be successful, you first have to look at the story behind the data, and each story is unique.
There are many metrics an analyst can dive into to help them understand the story of how a user progresses through an app. If you let the following 10 metrics be a key part of your data analytics process, they can help you understand the user journey, and also be a great check-up for the health of your mobile app.
What You Need to Know
Let’s take a look at those 10 metrics.
- Visitor: This is your user base. It’s not just a plain number, but the raw material you have to drive all your key goals. This will set the baseline for all your calculated metrics and is a key determinant of the health of your app.
- Registered Visitor: This is the next step in the user journey. Specifically with apps, you have people vs. visits. For registered visitors, you are looking at who is signing up or registering. This is where the user takes that next potential step to get deeper into the content and becomes a part of the user experience.
- Crashes Per Visitor: Are there technological issues with your app? After registered visitors, you begin to look at performance experience, like crashes per visitor. In this case, the user is being forced to bounce, and it’s not a good thing to experience. At this point, you could also add an exit rate for any particular point in the experience, like a home screen, and then you have both sides of the bounce experience.
- Screen Views Per Visitor: Does the user consume a lot of content? A screen view is the idea of content consumption or how much the user is actually consuming. This can be a good or bad metric depending on the situation.For example, if someone is coming to an e-commerce site and they are viewing a large number of pages, they may be in a purchase cycle and simply conducting a lot of research. On the other hand, they could be really confused and trying to find what they are looking for. Therefore, you have to have metrics that support something like this so you can define whether your data is good or bad.
- Visits Per Daily Visitor: This is your returning user metric, or if someone comes to your app and goes through the previous four metrics. If app views are frequent, but you don’t have returning visitors to the app and those numbers are low, then something is not quite right with the UX design. You may have misunderstood what your users really want to accomplish on your app. That is why people aren’t coming back to your app.
- Active Visitors: This metric is determined by whoever the client is. The user can be someone who converts either at a macro level where they purchase, or at a micro level where they sign up for something like an email campaign.Active visitors can be taking some of those minimal barrier-to-entry type of conversions. For example, if a product page is really important for people to see, you would add that to your metric. Active visitors are people who engage with certain promotions and view your product page. These users may not be converting, but they are most importantly engaged in your app. You can imagine lots of screen views, which feeds back to the previous five metrics.
- Stickiness or Retention: This metric can be defined as a few different things, but as an example, you can do three, five, and seven-day stickiness. This is the engagement cycle of the user, and it helps you discover at what rate people come back to your app. You may be thinking if people come back at a high rate every three, five, or seven days. What about the rate for people that come back on a daily basis?For a food delivery service app, the rate at which people come back might as quick as one day. For example, the user may want breakfast deals every morning or lunch deals every afternoon. These numbers and percentages are interesting to analyze because it’s like a puzzle. It tells you the impact of other metrics across your app in terms of having returning users.
- Revenue Per Visitor: This is the idea of your revenue health. It’s how much money people spend on average, per person, that comes to the app. How much money do you gain from a visitor? This also helps you understand the quality of your users. Is this metric trending up? Then you are getting the users you want. Trending down? Then you need to look into your user acquisition strategy or redefine your business goals. Beyond that is revenue per active visitor.
- Revenue Per Active Visitor: Now we are digging into whether or not someone engaging with what you would consider your micro conversions would lead to more revenue. And you would expect it would. A visitor who registers and who is active is most likely going to spend more money.In most cases, the Revenue Per Active Visitor is typically higher than the Revenue Per Visitor metric. And if it isn’t, there’s a couple reasons why that could be. There may be no loyalty or incentive to be an active member of the app. You may also not know your users well enough, you don’t know what your micro conversions are, or you don’t know your product.
- Lifetime Value: This is in terms of what we gain from a user during an entire period of their lifetime. This is the beginning to the end of the user journey, all combined into one metric.
These metrics are just a foundation for you as the analyst (or the analyst on your team) to get creative with. This view of your business accomplishes both health maintenance and optimization opportunities. What you will realize in producing a dashboard like this is you have levers in your business you might not know about or understand their full implication. A process of analysis of any interesting trends and revisiting micro/macro KPIs should be put in place to ever evolve how you measure your business and drive data-driven decisions.