There are 3 metrics that are actually derived from one measurement. The metrics I am talking about are Retention, Churn and Duration.
Retention is the percentage of users that come back to you app after a period X of time. So monthly retention will be the percentage of users that used your app last month that also used it this month.
Churn is 1 – Retention. Which is the percentage of users you loose every X period of time.
Duration is the length of time your users use your app on average before stop using it altogether. You calculate Duration by diving 1/Churn. So if your monthly retention is 20%, your monthly churn is 80% and you Duration in months is 1/0.8 which equals 1.25 months or 37.5 days.
You can also do this measurement in smaller chunks of time. For example you could …
As I mentioned before the Life Time Customer Value (LTV) measurement is the most important metric of your app. It takes into account how well your app monetizes with how well it engages users and gives you one simple number that you can use to forecast revenue.
What if your LTV is low and your app can’t produce enough revenue to support large marketing efforts? Then you look at retention and stickiness metrics to figure what is going on. The metrics I like to use are:
a) Retention rate. This tells what percentage of users you retain after the first time they use your app. If this number is way bellow standard for your genre then maybe the value of your app is not apparent to your user quickly enough.
b) Average session length. This tells you how long users spend on your …
Big app houses measure everything about their apps. As a matter of fact they gather data preventively just in case that data will show patterns or be useful later on.
The reality is that for many medium and small app studios gathering that much data is not feasible. They might not have a server side engineering team ready to build the tools necessary to gather this data of do the data mining. But, there are four metrics that you can get without too much effort that tell you in a glance how your app is doing.
1) LTV (Life Time Customer Value)
This metric is fundamental. With it you can forecast revenue taking into account how many new daily users you are planning to get. If you can forecast revenue, you can also figure out how much money to spend on marketing.
The LTV …