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Vikram Aditya
CEO & Co-founder
August 2, 2023

Given how ubiquitous smartphones are, 'mobile' is not an add-on to a business, but an inherent part of its fabric. The necessity of understanding and optimizing how users interact with your app can’t be overstated.

DEFINING MOBILE APP ANALYTICS

Mobile App Analytics is the process of measuring and analyzing data generated from user interaction with your app. This involves observing user behavior, tracking key performance indicators (KPIs), and interpreting this data to inform decisions about product development and marketing strategy.

It's a fine-tuned lens that enables you to scrutinize every tap, swipe, and pinch within your app. It does so by providing the  granular details necessary for both optimizing your product to meet user needs and consequently improving your bottom line.

Though a part of product analytics more broadly speaking, mobile app analytics is nevertheless distinct, dealing with elements unique to mobile platforms, such as app store performance, gesture-based user behavior, and push notification interactions.

BASICS OF USER ANALYTICS

1. User Acquisition:

User acquisition is the starting point of your analytics journey, and it’s much more than a numbers game. It's about attracting not just any users, but the right users - those who will engage, contribute, and become advocates for your app. Here are some metrics:

Source Tracking

Identifying where your users are coming from can shed light on which channels are most effective. If organic search is driving most installs, you may want to enhance your SEO efforts or create more content to engage this audience. If referrals are leading the pack, a more robust referral program might be a worthy investment.

Consumer Acquisition Cost

This is especially important in paid campaigns. If your CAC exceeds the revenue a user brings in, it’s a red flag that your marketing strategy needs reassessment. A deep dive into your campaign performance can identify areas of inefficiency and opportunities for optimization.

Lifetime Value

LTV isn't just about revenue. It considers user retention and spend, offering a comprehensive view of a user's value. High-LTV users not only contribute to your app's revenue but also help grow your user base through referrals. By identifying the characteristics of high-LTV users, you can tailor your acquisition strategies to attract similar users.

2. User Behaviour:

Once users are on board, understanding their in-app behavior becomes crucial. This involves monitoring not just what users do, but also how and why they do it. Here are some methods for optimizing user behavior:

Screen Flow Analysis

A granular alternative to session length, screen flow shows the paths users take through your app. This can identify bottlenecks, highlight popular features, and reveal opportunities to streamline navigation. If users regularly jump from a product page to an FAQ page, adding more information on the product page could keep users engaged and reduce friction.

Page Views Monitoring

If key features of your app are underutilized, it may indicate that users aren’t aware of them. For instance, if the 'settings' page, where users can customize their experience, receives little traffic, consider highlighting this feature more prominently or introducing a tutorial to demonstrate the benefits of customization.

Conversion Rate Optimization

If your in-app survey is failing to engage users, experimenting with different strategies can help. You might try shorter surveys, adjust the timing of prompts, or incentivize survey completion with rewards. Each of these tactics can increase survey engagement, providing valuable user feedback.

3. BOOSTING USER RETENTION:

Retention is about making your app indispensable. An app that consistently delivers value will see users return time and again. Here are some techniques to bolster user retention:

A: DAU/MAU Ratio Monitoring

This ratio indicates how frequently users engage with your app. A high ratio suggests frequent use, a sign of a sticky app that users find valuable. If the ratio is low, it might be time to investigate why users aren’t returning and devise strategies to re-engage them.

B: Churn Analysis

Keeping an eye on your churn rate can alert you to potential issues before they become critical. An increase in churn might indicate emerging problems with user experience, technical issues, or shifts in market dynamics. Prompt investigation can lead to timely interventions.

D: Retention Rate Tracking

Monitoring the percentage of users who return to your app after their first visit can reveal much about your app's appeal. If the retention rate starts to dip, it could signal that users aren't finding enough value in your app, prompting a reassessment of your feature set or user experience.

Each of these approaches requires a careful analysis of data and a commitment to continual testing and refinement. By focusing on these key areas - acquisition, behavior, and retention - you can foster a robust and engaged user base, setting the stage for sustainable growth and profitability.

REAL WORLD APPLICATIONS

1. User Acquisition:

Let's consider the case of a hypothetical startup, FitnessPlus, a health and wellness app.

Organic Search

Suppose FitnessPlus started creating blog content about health, wellness, and fitness. This led to an increase in organic traffic to their website, and subsequently, a surge in app downloads. By using keywords effectively and creating high-quality content, FitnessPlus improved its visibility in organic searches, leading to higher user acquisition.

Paid Campaigns

FitnessPlus decided to invest in paid campaigns. They ran Google Adwords campaigns targeted at people searching for fitness and wellness apps. By tracking their cost per acquisition (CPA), they were able to optimize their campaigns and reduce costs while increasing their user base.

2.User Behaviour

Feature Utilization

FitnessPlus launched a new feature - a 30-day fitness challenge. By tracking which exercises within the challenge were completed most frequently, FitnessPlus was able to understand what kind of workouts its users prefer and adjust the content accordingly.

Navigation Paths

FitnessPlus noticed that users often navigated from the workout pages to nutritional tips. This led them to create a 'Suggested Recipes' feature on workout pages, making it easier for users to navigate and increasing user satisfaction.

3.User Retention:

Let's see how FitnessPlus tackled retention:

DAU & MAU

FitnessPlus monitored its DAU/MAU ratio, noticing that while it had a high MAU, the DAU was comparatively lower. They launched a 'Daily Workout' feature, motivating users to return daily to complete new workouts, resulting in a better DAU/MAU ratio.

Churn & Retention Rates

Over time, FitnessPlus observed a rising churn rate. To counter this, they conducted user surveys to understand the reasons for user churn and made necessary adjustments to their app experience. The survey feedback highlighted the need for more diverse workouts, leading to the creation of new content, thus improving their retention rate.

Monetization is the ultimate goal of this cyclical process. High user retention signifies not just an enjoyable app, but a valuable one. And where there's value, there's potential for monetization. Be it through in-app purchases, subscriptions, ad revenues, or premium features, retained users are more likely to invest in your app.

Consequently, every user you acquire, every behavior you optimize, and every user you retain feeds into your bottom line. Mobile App Analytics is not just a tool to understand your app's performance; ultimately, it's a compass that guides you towards profitability.

Crunch makes that compass far easier to decipher and read, drastically decreasing the difficulty involved in parsing through complex analytics data.

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