App Metrics That Matter

As we set out to build the Mygola app, we realized one of the hardest things was to understand
what stats mattered in the app world, and what targets made sense given our category. Heres
the fruit of that research.

Table of Contents
Table of Contents
DAU/MAU
Retention
Usage Patterns
Push messages
Acquisition Channels
Churn
Revenue per MAU
Where apps are discovered
What stats should we target?
MORE INDUSTRY WISDOM

DAU/MAU
For games, DAU/MAU of ~20-30% is considered to be pretty good. For social apps, like a messenger
app, a successful one would have a DAU/MAU closer to 50%. In general most apps struggle to get to
DAU/MAU of 20% or more.
https://clarity.fm/questions/755/what-is-the-generally-agreed-upon-good-dau-mau-for-mobile-apps
For a casual game, Actual Stickiness = 20% would be a good number to target
http://www.gamasutra.com/blogs/GurinderSingh/20140123/209055/5_Metrics_every_mobile_game_devel
oper_must_track.php?print=1
According to Fred Wilson, DAU = 10% of downloads, MAU = 30% of downloads. That is, stickiness = 33%
http://avc.com/2011/07/301010/

Retention

Quadrant IV is made up of apps that are used infrequently but deliver very high value when used. Even
though theyre used only occasionally, these apps can remain on a consumer's handset almost
indefinitely. For example, consider how useful an airline, hotel or rental car-booking app is to a business
traveler. While the app remains unused between business trips, its value spikes as soon as the next
business trip needs to be scheduled.
The quadrant an app falls into can help the content creator decide what business model is best. On
average, Quadrants I and IV (the right-hand side) are better suited to subscription and advertising-

supported models. The main reason is that these apps have perceived enduring value by consumers over
a long period of time, and therefore more successfully retain their user bases.
Additionally, quadrants II and IV (top left and bottom right) are likely best for in-app purchase models.
For Quadrant IV, because the user will return again and again, there also exists the possibility to find new
ways of increasing value, which includes offering add-on functionality or content for a fee.

http://www.flurry.com/bid/90743/App-Engagement-The-Matrix-Reloaded#.U_WIVYB0rb8
`
To be in the top third for retention, an app needed to have at least 37% of those who started using the app
in November do so again more than 30 days later.

http://www.flurry.com/bid/95072/Black-Holes-and-Superstars-in-the-App-Universe#.U_WIJYB0rb8

Last month in average only 14% of users stuck around a day after downloading an app. Day 7 retention
went from a respectable 23% to a measly 10% in May 2014, while Day 30 retention plummeted from 14%
to 2.3%

http://andrewchen.co/2014/09/24/mobile-retention-benchmarks-for-2014-vs-2013-show-a-50-drop-in-d1retention-guest-post

Usage Patterns

http://www.flurry.com/bid/96368/There-s-An-App-Audience-for-That-But-It-s-Fragmented#.U_WH8YB0rb8

http://www.flurry.com/bid/98080/A-Day-in-the-Life-of-a-Mobile-Consumer#.U_WH5IB0rb8

http://www.flurry.com/bid/99859/The-Who-What-and-When-of-iPhone-and-iPad-Usage#.U_WH04B0rb8

Half life is the point at which an apps monthly users (MAU) have declined to 50% of their lifetime peak.

More than half (56%) of apps that manage to hold more than half of their peak users for the first four
months after they peak are still holding on to more than half of them ten months post peak.
http://www.flurry.com/bid/108904/Benchmarking-the-Half-Life-and-Decay-of-Mobile-Apps#.U_WHqYB0rb8

INFOGRAPHIC
http://info.localytics.com/blog/how-to-do-awesome-app-marketing-infographic

20% of apps are only opened once after download, according to Localytics.

http://info.localytics.com/blog/app-retention-improves

Push messages
52% of people opt-in to push messages http://info.localytics.com/blog/52-percent-of-users-enablepush-messaging
Localytics observes a 7% open rate for segmented push messaging compared to a 3% open rate
for generic, broadcast messages
Push Messaging Drives 88% More App Launches http://info.localytics.com/blog/push-messagingdrives-88-more-app-launches-for-users-who-opt-in

http://andrewchen.co/2014/09/16/new-data-on-push-notification-ctrs-shows-the-best-apps-perform-4xbetter-than-the-worst-heres-why-guest-post/

http://www.emarketer.com/Article/Proof-App-Push-Notifications-Actually-Matter/1011149

Acquisition Channels

http://appflood.com/blog/what-is-a-normal-install-rate

http://appflood.com/blog/average-ctr-by-ad-formats
What is the spike in download rate when the iOS app store makes your app an "Editor's Choice?"
Expect a 30X on your normal download
http://www.quora.com/iOS-App-Store/What-is-the-spike-in-download-rate-when-the-iOS-app-storemakes-your-app-an-Editors-Choice
What affect does ranking in AppStore have on downloads?
A ranking of No. 10, for example, generates about 30% more demand for a particular app than if it were
outside of the top 20. At a ranking of No. 1, the increased visibility boosts sales by 90%.

www.fool.com/investing/general/2014/07/21/how-much-does-a-top-app-store-ranking-boosts-sales.aspx
How being featured affects downloads
http://www.distimo.com/blog/page/2/
What is the average download rate (not CTR) of a mobile ad for an app in the iOS App
Store/Google Play?
I would hazard a guesstimate around 1% - 2% conversion on a average 3% - 5% click through.
Incentivized installs can yield 7-8% CTR else it hovers between 1-2%
http://www.quora.com/Mobile-Advertising/What-is-the-average-download-rate-not-CTR-of-a-mobile-adfor-an-app-in-the-iOS-App-Store-Google-Play
We're a top 200 app in the US and we see about 75% of our users allowing exact location.
http://www.quora.com/iOS-Development/Whats-the-average-conversion-rate-when-third-party-iOS-appsask-to-access-a-users-location
What are typical conversion rates on in-app purchases within free iOS apps?
As one reference point, freemium iOS games could convert anywhere from 2-10%+ depending on these
factors.
http://www.quora.com/What-are-typical-conversion-rates-on-in-app-purchases-within-free-iOS-apps
How being featured affects downloads

http://www.distimo.com/blog/page/2/
How good are users acquired from Facebook?

Our data shows that Facebook mobile app install ads offer much more value than a short-term boost in
app store rankings and that Facebook users overall retain just as well as those acquired organically.
During the 60-day period in this study, 81% of new users acquired through Facebook had more than one
app usage, compared to 78% of organically acquired users.
http://info.localytics.com/blog/facebook-mobile-app-install-ad-effectiveness

Churn
In examining global iOS (iPad and iPhone) app usage, the median user returns within just under 6 hours
of his first app usage. However if a user doesnt launch an app for a second time within one day from first
use, there is a 40% chance that their first session will also be their last.

http://info.localytics.com/blog/the-app-churn-risk-window

http://info.localytics.com/blog/mobile-apps-whats-a-good-conversion-rate

Power Users: % of an app's users who have 10+ sessions in a month, i.e. how many highly engaged
users an app has.
Loyal Users: % of an app's users who return to the app within 3 months of their first session, which is the
industry benchmark to measure loyalty and churn.
App Stickiness: Average of an app's Power Users and Loyal Users.
App Burnout: When an app's Power Users are significantly greater than its Loyal Users. Users will
download an app, use it many times in a short period, then stop using it when they have reached an
'engagement ceiling' with the app.

http://www.localytics.com/resources/app-stickiness-index-q2-2014/
30% of the registered users or number of downloads (if its a mobile app) will use the service each month.
10% of the registered users or number of downloads (if its a mobile app) will use the service each day.
The max number of concurrent users of a real-time service will be 10% of the number of daily users
http://avc.com/2011/07/301010/

Revenue per MAU

In general i would place a value of $.25 to $.75 in potential revenue on single MAU on average.
https://clarity.fm/questions/755/what-is-the-generally-agreed-upon-good-dau-mau-for-mobile-apps

Where apps are discovered

http://www.fiercedeveloper.com/story/report-47-iphone-users-found-their-latest-app-through-app-storesearch/2014-10-10

What stats should we target?

* This is for a travel / lifestyle ap, based on our own understanding of building the Mygola app.
TARGET
Actual Stickiness = (DAU-New users today)/(MAU-New users today) > 20%
30-day rolling retention (% of users that came back to your app on the 30th day or any day after) > 35%
Look-to-book ratio > 0.5% per session
Look-to-book attempt > 5% per session
Book attempt to booked > 10%
Frequency of use by week (max) between 3 - 4 times**
App launches / month > 10
Viral coefficient > 0.1
% of users who open the app only once < 20%

Push notification CTR = 50%

Location permission > 60%
Get into top 10 in travel in every countrys app store we launch
Time spent in app per month > 40min
* Carefully choose who you define as an active user
** Believe that were counting sessions here, not individual days
Overall
Expect 1-3% of all mobile ad clicks that lead to the app store to result in a download (install rate)
D1, D7 and D30 retentions are calculated as the percentage of users who are active at any time after 1
day, 7 days and 30 days of installing your app.

MORE INDUSTRY WISDOM

From Ohad Barzilay CEO & Founder at New Legends Studios
We focus on different KPIs at different stages of the app lifetime. (please note I come from the game
industry so my experience/view is from that angle)
Soft Launch:
---Primary KPI: Retention.
Secondary KPI: Monetization.
Retention numbers vary between app categories and between game genres. As a base rule we aim for
this: 1DR: 40%-50%, 7DR: half of 1D, 30DR: half of 7D. (again, this is the basic rule, actual targets differ
by genre)
Retention must be high enough at launch since Retention the hardest to optimize, and Monetization is a
lot easier.
In monetization we look at Daily Conversions (from non-paying to paying) and Daily Revenue.
Soft Launch should last as as long as it takes to get the numbers right. The optimal is 2-3 months. Some
apps need/can afford even 5 months. A really bad (but unfortunately common) decision is will be to have
SL period end in less than 4-5 weeks.
Global Launch - first period (3-4 months)
---

Hopefully we got the base retention right by this stage, and some ok numbers on conversion.
Now its the time to focus on growth metrics, mainly eCPI and DAU.
The high retention is key so your marketing team won't waste huge amounts of money per user. This is
also the period your CPI is probably going to be the lowest in your app lifetime, so good retention and an
ok conversion will save you a *lot* of money (and headaches).
I'm not getting into the other production aspects of running the product (re-prioritizing app features based
on users being the key) but obviously there are more things happening than just KPI optimization during
this time. New features, balancing etc.
Ongoing Operation
--Now we mostly focus on eCPI vs Monetization, where monetization is the real important thing.
We measure KPIs on two levels:
On going Balancing (AB Tests, numbers, 3rd party ads, etc)
Specific Features, Sales, Events etc.
The first is where the app is on avg, without any special things happening, and KPI improvement here is
very difficult, takes long time and changes are small. This is where a BA or Data Analyst can make the big
difference in spotting hidden patterns.
The second is the search for a game changer. Is a special feature changes KPIs significantly? Running
Sales? Real time Events? this is how you find ways to create spikes in the KPIs, though they hardly
translate to a constant improvement. It's finding how may times a week you can do special sales or add a
key feature.
Ok, this comment came out too long... Hope it contributes context to the great list you made.