The mobile app industry has been thriving for years, and 2023 is no exception. With mobile apps expected to generate over $93 billion in revenue this year, it's clear that the industry is on a roll. But making an app successful isn't easy, and one of the key factors of success is tracking your marketing Key Performance Indicators (KPIs) and making the necessary improvements to continue scaling.

Tracking App User Experience: The Importance of KPIs

If you've looked at your app's backend data, you might feel lost as to what's actually important. Having the right tools is critical to staying on top of the data so that you can create, revise, or – in some cases – abandon features and marketing efforts as needed. The most important app metrics – or KPIs – to track can be categorized based on which part of the user journey you are evaluating.

User Acquisition Metrics

To get started with tracking your app's performance, let's dive into the top 12 app marketing KPIs to track, broken down by three key areas of the app marketing funnel: User Acquisition, User Engagement, and Business Growth.

Cost per Install (CPI)

CPI tells you how much it costs to acquire a new user from a paid ad. It's calculated by dividing your ad spend over a specific period of time by the number of new installs made during that same time. While a low CPI might seem like a good thing, it's not always a guarantee of success. A targeted approach using trusted ad networks can lead to a higher CPI, but a better return on ad spend (ROAS) and lifetime value (LTV) can make up for it.

Cost per Thousand (CPM)

CPM, or Cost per Mille (Thousand), is the cost of getting a thousand impressions on your ad. While CPM might not be as exciting as CPI, tracking it can give you valuable insights into how effective your ads are. You can compare it to your CPI and see if there's room for improvement.

Cost per Click (CPC)

This metric tells you how much you pay per click on a paid ad. Keep in mind that your CPC rate varies greatly by ad platform, device, and even ad placement. If you're running a PPC ad campaign, the goal is to increase the click-through rate (CTR) and decrease your CPC.

Conversion Rate

Conversion Rate (CVR) is the percentage of users who download your app from the total number of users who visited your app store page. CVR varies based on the app category, platform (iOS or Android), and country. This metric measures all downloads attributed to new users compared to the number of times your app was seen in the App Store.

Conclusion

Tracking the right KPIs can help you optimize your app's user experience and drive business growth. By focusing on User Acquisition metrics like CPI, CPM, CPC, and Conversion Rate, you can gain valuable insights into how effective your marketing efforts are. Remember to keep track of these metrics regularly to stay on top of your app's performance and make data-driven decisions to improve it.