After defining your data vision as highlighted in the previous post, it's time to enable some basic metrics in your product. These metrics provide an overview of your product’s health.
While you are focused on getting your product out the door, you should spend some time integrating basic industry standard metrics in your product as a means to gain high-level insight into your user behavior, product, and general business model. These metrics can be obtained easily by integrating SDKs provided by most of the app analytics tools available today. As with any analytics implementation, it is key to think about what are the performance indicators (KPIs) that are most important for your app and business model. The metrics we dive into here are just the beginning ones for you to think about.
A good way to look at these metrics is on a daily, weekly, and monthly basis on a timeline. Furthermore, depending on the metrics, they should be filtered by:
Below we will review these basic metrics and highlight their importance.
The acquisition metrics provide insights into the channels that are driving users to your app or website. These channels could be organic, paid ad campaigns such as Google Adwords or Facebook, cross-promotion campaigns, emails, referral, or any other channel specific to your product.
The common acquisition metrics to track are:
These metrics will tell you how your app or website is finding users, and how much is it costing you. Please note that the true campaign optimization should be based on ROI, not CPI. We will cover this in a subsequent blog post.
The first time user experience plays a critical role in converting a new user to an active user who will engage with product and monetize in future. These metrics, also called as activation metrics, are generally measured as funnels of all the critical paths involved in user activation.
A basic example of such a funnel would be:
App Open -> View product intro slides -> Click on Sign up -> Enter email and password -> Action inside product
Similarly, for a game:
App Open -> View Intro screen -> Tutorial Step 1 -> Tutorial Step 2 -> … -> Tutorial Complete
It is critical to optimize the funnels and remove all the points where user drop off in the first time user funnel.
The basic user metrics lay the foundation for advanced metrics required to get deeper insights into user behavior, and are necessary to understand how your users are using the app. The most commonly measured usage metrics are:
As mentioned above, you can get deeper insights by filtering the information. For example, you can split users by Country, Language, Acquisition Source, or Platform.
Retention metrics are arguably the most important metrics because highly engaged users generally monetize at much higher rate than non-engaged users. A baseline start is to track Day 1, Day 2, Day 3, Day 7, Day 14, and Day 30 retention of users.
Retention is viewed in a cohort table with each cohort corresponding to the acquisition date. The trend helps you identify if your app’s retention is improving over time.
A sample cohort looks like this:
These metrics tell you how much money you are making, and from whom. Based on these insights, you can take action to improve your monetization methods by optimizing your product.
The most common monetization metrics are:
Apart from these metrics, the purchase funnel plays a very important role and should be tested and optimized to maximize revenue.
A sample purchase funnel can be:
View Item -> Save to Cart -> Opencart -> Review -> Enter purchase Info -> Verify Order -> Purchase
The Table below summarizes the basic metrics:
All said and done, these metrics only provide you a very high level of visibility. The next step in your data journey is to start thinking about custom metrics. We will begin discussing this in our next blog post.