Grow App Revenue with These 3 Critical Analytics Metrics

App marketing is a powerful way to immediately impact your revenue, but the foundation for successful campaigns come from strong app analytics. Tracking the right metrics and events within your app can reveal ways to improve the user experience, increase engagement, and spend money wisely on app marketing efforts. In this post, we’ll walk you through three critical app analytics metrics and how they can help you grow your app revenue.


1. Acquisition: Where Are Your Valuable Users Coming From?

Acquisition tracking follows the number of users who download and install your app from a certain channel, be that organic search via app store, word-of-mouth, paid campaigns or in-app referrals. This metric not only lets you see where users came from, but how they behave once they start engaging with your app. The number of app downloads from a given source is important, but not as important as the value users drive when they’re immersed in the app experience.

Chasing app revenue clipart

How does this metric drive more revenue?

Every marketer wants to know which paid and organic channels are worth investing in. With acquisition tracking, you can find the ROI of each app marketing campaign, tied to the lifetime value of your acquired users. That means you can quickly shore up the spending on channels that might produce a lot of downloads, but less revenue down the road, and pour more fuel on the fire for the channels that are producing high value users.

Here are some more tips for measuring mobile acquisition.


2. Retention: Is Your App Holding Onto Value-Driving Users?

We know that 22% of apps downloaded are never used more than once, but what are the other 78% of apps doing right to keep users engaged for a long time? Retention is measured as the percentage of users who return to your app based on the date of their first visit. Retention, or “cohort,” tracking highlights your most engaged – and valuable – users, creating better targeting opportunities and personalization of the app experience. Releasing an updated version of your app is a great opportunity to track how your retention changes across platforms, devices, segments, and campaigns.

Holding onto value driving app users

How does this metric drive more revenue?

If your app feels personal, feature-rich, and straightforward, users will want to engage with it for longer and keep coming back for more. These users are much more likely to convert within your app and drive revenue. Retention is more than just an app health metric; it’s a viability measure for if your users will stick around long enough to contribute value.


3. Lifetime Value: Which User Activities Drive Revenue Longest?

Lifetime value is your primary revenue metric, representing the value of the app and how much each app user is worth during his or her lifetime. LTV isn’t limited by whether you consider revenue as a dollar amount or some other metric like social sharing or articles read, and can be split by average monthly value or value per customer across all channels. Lifetime value is basically the answer to the ROI question for acquisition; by following acquisition sources all the way to average user LTV, you can determine which sources are working, and which need tuning.

Money in grass

How does this metric drive more revenue?

By slicing and dicing LTV, you can see which user segments, acquisition sources, cohorts, and even mobile v. non-mobile devices are contributing most to your bottom line. Spotting valuable user behavior lets you determine how to apply the winning formula to the rest of your users. Not only does LTV tell you if you’re doing things right, but it also tells you how to do things better to make your app less of an experiment and more of a reliable revenue channel.

Learn more about the importance of lifetime value.


Get to Revenue Growth

Encouraging revenue-driving behavior from your app users is a progressive push-pull process of pulling the most valuable user activities from your app analytics and pushing attractive app marketing campaigns their way to prompt more conversions and purchases. By keeping these and the other critical app analytics metrics top-of-mind, you can fuel better app marketing activities and track their effectiveness for long term revenue growth.

How have you organically grown revenue for your app? 


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