{"id":231,"date":"2017-06-02T12:23:47","date_gmt":"2017-06-02T12:23:47","guid":{"rendered":"http:\/\/torogrowth.com\/insights\/?p=231"},"modified":"2018-11-02T11:31:03","modified_gmt":"2018-11-02T11:31:03","slug":"introduction-mobile-app-analytics","status":"publish","type":"post","link":"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/","title":{"rendered":"An introduction to mobile app analytics"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Mobile_app_analytics_%E2%80%93_the_most_important_data_indicators\" >Mobile app analytics \u2013 the most important data indicators<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#User_indicators\" >User indicators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Number_of_mobile_app_installations_uninstallations\" >Number of mobile app installations \/ uninstallations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#User_count\" >User count<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#DAU_%E2%80%93_Daily_Active_Users\" >DAU \u2013 Daily Active Users<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#MAU_%E2%80%93_Monthly_Active_Users\" >MAU &#8211; Monthly Active Users<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Geographical_indicators\" >Geographical indicators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Engagement_indicators\" >Engagement indicators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Session_length\" >Session length<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#In-app_time\" >In-app time<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Session_intervals\" >Session intervals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Retention_indicator\" >Retention indicator<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Mobile_app_activity\" >Mobile app activity<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#App_Marketing_indicators\" >App Marketing indicators<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Conversion\" >Conversion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#ARPU\" >ARPU<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#ARPDAU\" >ARPDAU<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#LTV_%E2%80%93_Lifetime_Value\" >LTV &#8211; Lifetime Value<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/arpubrothers.com\/blog\/introduction-mobile-app-analytics\/#Customer_Acquisition_Cost\" >Customer Acquisition Cost<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Mobile_app_analytics_%E2%80%93_the_most_important_data_indicators\"><\/span>Mobile app analytics \u2013 the most important data indicators<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The mobile app market keeps on evolving, supplying us with more and more solutions that we now use daily. Apple and Google Stores are full of interesting ideas to make you think \u201cwhy didn\u2019t I think of this?\u201d. Some users even say that there are apps that have drastically changed their life. There are countless stories of couples finding love through Tinder, re-gained form thanks to Endomondo and of the big savings of the users of Fuelio or Yanosik. All of those mobile apps have implemented innovative solutions, which left a mark in people\u2019s daily life. However, most developer stories do not start with a flash of genius and some magical materialization of a perfect product. It is usually a result of hard work and changes to the idea based on thorough user analysis \u2013 their needs, behavior, sympathy and antipathy \u2013 it is a constant evolution. This is why so many of the mobile apps we use today are currently so different from their initial state. Developers cannot afford to stop listening to their clients and making sure that the product keeps on being updated. Below, you can find a description of all of the most essential analytic indicators in mobile apps \u2013 they will help you deliver the best product possible. Remember, that if you do not know how to properly analyze the data streamed from your games and mobile apps, paid <a href=\"https:\/\/arpubrothers.com\" target=\"_blank\" rel=\"noopener noreferrer\"><strong>mobile app marketing<\/strong><\/a> \u200bbecomes practically useless. Those indicators have been divided into 3 main sections:<br \/>\n<strong><br \/>\nMobile app user indicators<br \/>\nMobile app engagement indicators<br \/>\nMobile app economic indicators<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"User_indicators\"><\/span>User indicators<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Number_of_mobile_app_installations_uninstallations\"><\/span>Number of mobile app installations \/ uninstallations<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Tracking the number of downloads of a mobile app is one of the more \u201evisual\u201d ways of grasping its growth. It is of course a big simplification, since popularity is not always strictly related to economic success \u2013 however, more does usually mean better. There is of course always a risk that our mobile app is abandoned already shortly after its installation \u2013 using such an indicator requires a broader context. It is also important to gather data about the webpage the new user entered the store from. When you have all of the above, the amount of downloads from a given channel can actually properly tell you if you are achieving your goal. If you notice an increase in social media traffic for example, it is a good idea to keep being active and working more in that field. It is also logical that, while looking at the number of installations, you should also consider the number of uninstallations to be able to get a correct view.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"User_count\"><\/span>User count<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The number of downloads and installations of a mobile app, paired with its user count, can give you a good idea of its state \u2013 they are not always equal. The user count can be measured by a number of criteria \u2013 below, we will present a couple of indicators for the active user count. It is essential that we define what an \u201cactive user\u201d is. Depending on the type of mobile app or game we are conducting the measurement on, we can consider a user who has done a certain activity an active user. It could be reaching the next level in a game, sending a message or a friend request. It is not a good idea to consider every user, who opened the app or game an active user, though \u2013 in this case, context and our expectations are most important. Being active does not mean the same thing for everybody \u2013 and so, it is vital that we are sure what it means to us. Mobile app developers sometimes treat this aspect in a very binary way, which renders the results wrongly satisfying &#8211; instead of informative.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"DAU_%E2%80%93_Daily_Active_Users\"><\/span>DAU \u2013 Daily Active Users<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>DAU (Daily Active Users) is an indicator displaying the number of unique, active users, who, at least once a day, started a session within your mobile app. This type of indicator is one of many others, which function best with additional, contextual data \u2013 still, in many cases, even such a small fragment can be quite useful. Such a case could, for example, be launching a marketing campaign. If you expect the users to visit your mobile app daily, DAU is a great starting point for your observation. Some marketers do say, that DAU is not a very informative indicator. However, if we define user activity properly, DAU is great for approximations regarding our monetization model. An example of a definition of an active user, according to Facebook, is a user who logged onto an app or website and used the available functions, for example pressed like. Here, an active user is not one who only used FB plugins on different websites, even if he liked something or shared content. It is very good to be able to, through DAU, distinguish a single user, even if he uses two different devices every day. Those devices could, for example, be a private phone, a company phone or a tablet \u2013 if a user is counted as a \u201cnew user\u201d on all three, the statistics are ruined. A good solution is to use a verification method through an account name, phone number or e-mail address. This will also help with verification after a user updates his device to a new one.<br \/>\n<a href=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/daily_active_users_mobile_apps.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-269\" src=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/daily_active_users_mobile_apps.png\" alt=\"Daily active users in mobile apps\" width=\"1024\" height=\"372\" srcset=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/daily_active_users_mobile_apps.png 1024w, https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/daily_active_users_mobile_apps-300x109.png 300w, https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/daily_active_users_mobile_apps-768x279.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAU_%E2%80%93_Monthly_Active_Users\"><\/span>MAU &#8211; Monthly Active Users<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Unlike DAU, the MAU (Monthly Active Users) indicator\u2019s timeframe is 30 days. This means that an active user has to have done a certain activity at least once in a month \u2013 and it does not matter if had done it multiple times or just once.<br \/>\nTo calculate MAU, Twitter defines an active user as a user who follows at least 30 other users and is also followed by at least 1\/3 of them. If such a user logs in at least once every 30 days, he has qualified for MAU. The use of DAU and MAU can be different depending on the type of your mobile app. A big factor while analyzing the indicators is the so-called \u201ccyclicality\u201d of use of a given app. DAU is more important when analyzing mobile games with micro-payments, while MAU is great for apps that help you book flight tickets. The DAU\/MAU ratio is defined as the \u201cstickiness\u201d of a mobile app. While comparing the two indicators, we can determine how often it is that users come back to the app. This value will always be between 0 and 1 and can be expressed as a percentage value. Let\u2019s now assume that the DAU of an app is 2000, while MAU is equal to 10000. This means that, on average, users logged in during 20% of the chosen days, which equals to once every 6 days. In the case of mobile games, a 20% ratio would be a very good result \u2013 mobile apps like Facebook Messenger and WhatsApp can however boast a 50% ratio.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Geographical_indicators\"><\/span>Geographical indicators<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The way the mobile app market is built allows you to reach users from all over the world. It does not matter whether you have a huge studio or are a small company registered in a garage \u2013 your game or mobile app can, without limitations, reach all continents. This fact means that, while developing your mobile app, you should take additional factors into account.<br \/>\nKnowledge regarding the country of origin of your users can be helpful in multiple ways. Let\u2019s assume that, even though the app is available globally, the majority of users come from one region. Analyzing what caused the success in the region and the behavior of its users can give us a recipe to duplicate this victory model in other regions.<br \/>\nWhile looking at the user outflow in various regions, mobile app developers can often see problems they would otherwise not be aware of. The correct implementation or adjustment of elements of local culture can be the deciding factor of your mobile app\u2019s existence. There is a difference between translating a mobile app and making it viable in a certain region. Let\u2019s look at the calendar &#8211; in some parts of the world, the date formats are very different. If your mobile app and its functionality was strongly based on one calendar agenda, it could be rendered useless for the rest of the population. The chosen weight and scale unit systems of can also be important factors \u2013 having the option to toggle between them can be a good idea.<br \/>\nThe choice of a graphical style or color scheme can also often discourage the users from using your mobile app or game. Tracking the uninstallations or user outflow in a specific region can lead us to discovering problems connected to local culture, often forcing the developers to go with different solutions. Not everyone reads from left to right, for example. For apps, in which you need to swipe in a certain direction to go to the next section, the level of intuitiveness can be different from user to user.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Engagement_indicators\"><\/span>Engagement indicators<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Session_length\"><\/span>Session length<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The length of a session is the time of use of an app in a single sitting. Usually, it is assumed that, if a user carries out no command within the app for more than 30 seconds, the session has ended. The session is counted from the moment the app has been opened to the time it has been closed &#8211; its length can give an idea of how engaged users are in the app. The average session times are usually very different and depend on the app category. As an example, while launching Uber, we intend to quickly do exactly what we came for. We are only interested in getting a lift, and the developer only needs a short session to collect the revenue. This is one of the exceptional cases of the rule of \u201cthe more the better\u201d \u2013 generally, and for most categories, the longer the session, the better the cession.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"In-app_time\"><\/span>In-app time<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Although the saying \u201ethe client is always right\u201d does seem a little over the top, it is reasonable in stating that clients should be at the center of every business. In the case of mobile apps and games, the users are what pushes the project forward. Your task is to make sure that they spend as much time within the app as possible. The in-app time of a user is the sum of all the time the user has spent in-session in a day, a week or a month. We have already mentioned the huge competition on the mobile app market \u2013 and because of it, the indicator is in fact, in the opinion of many mobile app developers, better at displaying the popularity of the app than the amount of downloads and comments or even the rating in the store.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Session_intervals\"><\/span>Session intervals<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This indicator helps us determine the frequency of starting new sessions. So far, we have been discussing only single sessions and the sum of their length \u2013 this indicator supplies this knowledge with data telling us how quickly the users tend to come back to the app. The app developers wants this time to be as small as possible \u2013 if it is alarming, there is no time to waste. From push notifications, mailing and text messages to even social media \u2013 you should try to bring the users back into the app in any way you can, through any available channel.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Retention_indicator\"><\/span>Retention indicator<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>This is the most often talked about indicator, also called one of the most important, especially in monetization models based on the freemium, in-app purchase model. Measuring <a href=\"https:\/\/arpubrothers.com\/blog\/user-retention-mobile-apps-games\/\" target=\"_blank\" rel=\"noopener noreferrer\">mobile app user retention<\/a> is essential to determining the value of a client. This indicator also tells us what impression the app has made on the user. The higher the retention indicator, the higher the chance of a given user to undertake a certain expected activity, giving you simply more ways of convincing him to use the app.<br \/>\nSince a big part of apps is only used once after being installed, success in this field is very important. To accurately and precisely measure user retention, besides using the appropriate time intervals, you also need to properly classify your users. Diving them into the right sections will enable in-depth analysis, at the same time allowing for more precise action. If your app has a specific group of very engaged users, you should consider them a separate portion of the base \u2013 doing so will give you even more accurate results. Do some of your clients quickly abandon the service? You can ask questions like this one and gradually create multiple other groups, divided by, for example, the reason of outflow. Each section should be comprised of other receivers, concern other issues and need unique notifications.<br \/>\n<strong>Mobile App User Retention is one of the most difficult issues that mobile app developers have to deal with.<\/strong><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Mobile_app_activity\"><\/span>Mobile app activity<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>There is a plethora of statistics to track and count hiding behind this term. Mobile app activity can be understood as the number of entries to a given section, the amount of clicks on a certain button or simply as the sum of transactions. This indicator has to be defined by you personally \u2013 only you can determine what the most important information for your app\u2019s growth is. Even though the point of observation can be a part of the UX, marketing campaign or mobile app functionality, the end user should be the most important element and at the center of your activity.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"App_Marketing_indicators\"><\/span>App Marketing indicators<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<h3><span class=\"ez-toc-section\" id=\"Conversion\"><\/span>Conversion<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Conversion is the first economic indicator that tells us if our investment expectations are met. For example, if a user visited your mobile app to make a purchase after he had seen your ad on one of your partners\u2019 websites, you could say that the ad converts. The definition itself might sound a bit complicated, but the concept is quite easy to understand. What matters most here is clearly defining the goal you want to reach. This is why conversion can take the form of watching a commercial, clicking on a banner, registering in a mobile app, signing up for a newsletter or even visiting a certain section of the app. What is important is that those actions take place after the app has been reached through a certain channel. Did the newsletter readers connect their social media accounts with their in-game account? If that was the purpose, you can say that the conversion was successful.<br \/>\nWe can also use this method to examine the effect of certain CTAs within the app. Let\u2019s say that you inform your users about the option to purchase in-game extras after the completion of a level, encouraging them to press a special button. If the purchase took place, and you can be sure about the source of the traffic, you can also call it conversion. Your actions don\u2019t necessarily have to have only one expected effect. It can for example be that one commercial encourages viewers both to directly purchase a product and to sign up for a price alert system. In this case, we can define conversion for both events. If we achieve the same effect from two different actions, we will also have two different indicators &#8211; this time however with a different conversion source.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ARPU\"><\/span>ARPU<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>ARPU (Average Revenue Per User) tells us about the average income from a single user of a mobile app or game. Similarly to other indicators, it is calculated with a given timeframe \u2013 the indicator is connected to the MAU indicator. ARPU is calculated from a formula: APRU = REV \/ MAU, where REV is the sum of your income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ARPDAU\"><\/span>ARPDAU<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The ARPDAU (Average Revenue Per Daily Active User) indicator shows us the daily income from a single active user. This indicator is closely monitored by mobile game creators \u2013 it can show fluctuation, displayed by no other indicator. Unlike ARPU, ARPDAU enables us to precisely calculate the state of our monetization on a daily basis, not a monthly one. This indicator also helps us better interpret the short-term results of our actions. There exists also another, similar indicator called ARPPU, which tells us about the average revenue per paying user. This indicator is an even more precise tool for calculating revenue, focusing only on the sources that you monetize on, and, in the average, excluding the users that do not bring any income.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"LTV_%E2%80%93_Lifetime_Value\"><\/span>LTV &#8211; Lifetime Value<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>LTV is an abbreviation of \u201elifetime value\u201d, which is sometimes also phrased as CLV \u2013 \u201ecustomer lifetime value\u201d or LCV. Throughout various sources, we can find almost 20 different definitions of LTV. A well-known economist and professor of Kellogg School of Management, Philip Kotler, defines this concept followingly:<br \/>\n\u201cIt is the current value of all of the expected future income sources being a result of transactions with a client in a given timeframe\u201d. In a mobile app, LTV helps us measure the value of a client within the whole relationship \u2013 until the settlement of the last transaction of the cycle. This is the most complex of all indicators described so far. At first glance, LTV might seem similar to ARPU, but it is in fact much more complicated. ARPU only considers the average income \u2013 LTV has more variables. In <strong>mobile app analytics<\/strong>, it is generally stated that, when LTV is higher than the cost of a single installation, an on-going investment return has been reached. Similarly to the varying definitions of LTV itself, there are also a couple of different ways of calculating it. One of those formulae, called \u201caverage LTV\u201d, is derived by multiplying ARPDAU with the average retention indicator. The disadvantage of this method is the relatively low reliability in the early phases of your business \u2013 the method requires a big user base and a longer time of presence on the market to work properly.<br \/>\nAnother method of calculation is based on the outflow indicator, with the formula being LTV = ARPU x (1\/outflow).<br \/>\nThere are also plenty of other ways of deriving this indicator. For it to be the most useful, the topic has to be deeply elaborated and you should choose the method that is the most appropriate for your economic goals.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Customer_Acquisition_Cost\"><\/span>Customer Acquisition Cost<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Also called Cost per new Customer, with an abbreviation of CAC. This indicator tells you the cost of a single installation by a unique user and the way said user has reached you.<br \/>\nThe easiest method of calculation is to sum up the total expenses connected to acquiring new customers and divide it by the number of new clients in a given timeframe. It is, next to LTV, one of the most important mobile app indicators \u2013 it helps us determine whether the investment is worth it and the cashflow is positive. By analyzing the ratio of LTV and CAC, it is quite easy to estimate the state of your business. If the ratio is equal to 1:1, you are essentially losing money. A ratio of 2:1 means that you\u2019re on the right track. If the Customer Acquisition Cost has a ratio of 3:1 to the Lifetime Value, the business is working like a well-oiled machine. Interestingly, a ratio of 4 to 1 can be considered too high &#8211; it can mean that our app\u2019s growth could be even higher with increased spending or acquisition of new clients.<br \/>\nThere is a lot of excellent mobile app analytics tools. We will definitely soon publish another article on app analytics tools on the blog. There is a couple of most popular options:<br \/>\n<a href=\"https:\/\/deltadna.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">DeltaDNA\u200b<\/a> founded in 2011, focused on the mobile game market. It enables you to learn about your users through accurate segmentation. The founders of the company describe themselves as gamers and data enthusiasts. With their tools, we can easily calculate all the indicators mentioned in this article and more \u2013 all in an easy to navigate, graphical form.<br \/>\n<a href=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/delta_dna_app_analytics_tool.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-270\" src=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/delta_dna_app_analytics_tool.png\" alt=\"App analytics tool - DeltaDNA\" width=\"1024\" height=\"437\" srcset=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/delta_dna_app_analytics_tool.png 1024w, https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/delta_dna_app_analytics_tool-300x128.png 300w, https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/delta_dna_app_analytics_tool-768x328.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><br \/>\nGoogle Analytics for mobile apps-\u200b this is one of the most popular app analytics tools of this type on the market, which should come as no surprise when you consider the fact that it has been developed by one of the biggest companies of the world. The fact that Google\u2019s tools are free is definitely also a big attractor. Google Analytics is used by both small and big companies \u2013 the functionality of the tool is quite wide \u2013 it enables you to track the sources of user acquisition, the amount of installations and uninstallations, in-app behavior and the conversion\/LTV indicators. The tool\u2019s business functionality connected to planning and real-time tracking of the expected results also has great potential.<br \/>\n<a href=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/google_analytics_for_mobile_apps.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-271\" src=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/google_analytics_for_mobile_apps.png\" alt=\"Google analytics for mobile apps\" width=\"1024\" height=\"438\" srcset=\"https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/google_analytics_for_mobile_apps.png 1024w, https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/google_analytics_for_mobile_apps-300x128.png 300w, https:\/\/arpubrothers.com\/blog\/wp-content\/uploads\/2017\/06\/google_analytics_for_mobile_apps-768x329.png 768w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><br \/>\n&nbsp;<br \/>\nThis is another example of a tool enabling in-depth analysis of mobile app user behavior. It is different from other solutions in that it is focused on functionality connected to marketing, such as A\/B tests, marketing campaign tracking or personalized notification integration. Aside from that, it also allows for real-time tracking of user engagement, income and all of the previously mentioned indicators.<br \/>\nAnother part of mobile app analytics are indicators connected to app performance. Some of the most important ones are presented below.<br \/>\n<strong>Network errors<\/strong> \u2013 they are most often connected to issues on the side of the internet supplier. Those types of errors can lead to instability in the app, it\u2019s low performance or completely disable its functionality.<br \/>\n<strong>App latency<\/strong> \u2013\u200b since not all user activity happens locally \u2013 some happens in the internet servers \u2013 a delay can form between the user\u2019s command and its effect. We can then experience a so-called \u201clag\u201d. Setting aside issues concerning the internet connection speed, which in itself is subject to latency, and the delays caused by the slow processing of the used device, you have to ensure the comfort of use of the app by optimizing the server\u2019s process of sending and receiving data from the scattered systems.<br \/>\n<strong>Mobile app loading time<\/strong> \u200b\u2013 this indicator tells you about the weight of the app session on the system and the time it takes the app to conduct certain activities. This can be the boot-up time, the time it takes to toggle an option, or, in the case of games, the loading time of a level. Those elements should be monitored and optimized &#8211; the user mustn\u2019t feel discouraged by the long reaction times of the app.<br \/>\n<strong>Mobile app crashes<\/strong> \u2013\u200b this indicator tells you how often the app crashes throughout a given amount of session boot-ups. This indicator is very important before the market release. Even after extensive pre-release testing, it might happen that users will have difficulties you did not predict. Indicators connected to devices and operating systems are the solution \u2013 the amount of different devices on the market is huge. Thus, even with Apple systems, you will be dealing with a plethora of model configurations and operating system versions. While collecting this type of statistics, you should focus on the optimization of your app for the most frequently used configuration. For some of the above described indicators, there are multiple variables and even more variable definitions. Of course, there is also a lot of other data worth tracking in a mobile app. The presented information does not cover the whole topic \u2013 it only suggests an outline and the benefits of learning more about your product and its users. It is now said that good ideas are worthless \u2013 what matters is the finish. Even if we are confident that the solutions we offer our clients are exactly what they need, we should not rely purely on our intuition. This is why in every aspect where it is better to look at pure data than guess, it is also a good idea to collect it, analyze it and use it \u2013 for the benefit of both your business and its clients.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mobile app analytics \u2013 the most important data indicators The mobile app market keeps on evolving, supplying us with more and more solutions that we now use daily. Apple and Google Stores are full of interesting ideas to make you think \u201cwhy didn\u2019t I think of this?\u201d. Some users even say that there are apps that have drastically changed their life. There are countless stories of couples finding love through Tinder, re-gained form thanks to Endomondo and of the big savings of the users of Fuelio or Yanosik. All of those mobile apps have implemented innovative solutions, which left a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":268,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-231","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-app-analytics"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>An introduction to mobile app analytics | App marketing agency<\/title>\n<meta name=\"description\" content=\"There is a lot of excellent mobile app analytics tools. 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