Sales data is the thing that helps you understand what’s going on with your business. Without this information, you’ll feel like you’re trying to make your way through thick fog… Stressful and unproductive.
The great news is that you don’t have to measure each step that your team takes. In fact, that’s the exact mistake that a lot of companies make. You don’t need to know every single key performance indicator of your mobile app, but you have to know the right ones if you want to boost your sales.
What are KPIs?
KPIs (Key Performance Indicators) are the most important indicators of the progress of your business. These measurements help you understand whether or not you and your team are working efficiently. Moreover, KPIs are important when it comes to the decision-making process and, ultimately, the indicators can show if you are on the right path to achieving the desired result.
How to Define the Right KPIs?
The list of key performance indicators is very long. Tracking dozens of KPIs can not just be overwhelming, it is also ineffective. Usually, you would want to have 2-3 KPIs per business objective.
Of course, the number of indicators will differ from company to company. Moreover, some measurements that are crucial for one business might simply be irrelevant in your case. So, take your time to find the KPIs that are right for your business.
We suggest you take these ones into consideration…
5 Mobile App KPIs You Need to Care about to Boost Your Sales
- Monthly Sales Growth
Calculating your sales growth is one of the easiest ways to find out whether your business is flourishing or stagnating.
All you need to know is the net sales for the current and previous period (it can be a week, month, year…). One important thing that you need to remember is that people tend to spend less during certain periods. And that sometimes the problem might be not your sales strategy, but the state of the economy and the time of the year.
- Marketing ROI
The Return of Investment helps you understand whether your splurge on a marketing campaign was worth it or not. The easiest way to calculate the ROI is by knowing your sales growth and the marketing cost.
For example, investing in video marketing is a great idea. Even though the whole process consists of quite a few stages (the development of the idea, the production, the creation of new ad sets, audience targeting…), the results are worth it, For example, 89% of video marketers say video ads give them a good ROI and at least 85% of businesses use video as a marketing tool.
- Subscription Customer Lifetime Value (LTV)
Subscription CLV (CLTV, LCV, or LTV) is a prediction of the value that your relationship with the future client will bring. Read the practical guide to calculating Mobile Subscription LTV.
In other words, LTV is the projected revenue that a customer will generate during their lifetime (the life of their account with your product). This KPI will help you understand how much you can pay to acquire a user and what are the effects of losing users.
- Conversion Rate
The percentage of visitors that complete the desired goal (trial or transaction). How many visitors per day/week/month do you have? How many of those end up doing what you want them to do? That’s your conversion rate :) You can use Qonversion Analytics to analyze your app revenue metrics.
- Retention/Churn Rate
This KPI is the percentage of customers that retain or churn in a period. It will help you understand the effectiveness of your marketing (pricing, customer service…). Moreover, the retention/churn rate shows you if you should continue doing the same thing or make a change (in case the churn rate is growing).
For example, 65% of people stop using the app three months after install. What you want to do is increase your retention rate – the percentage of people that continue using your service over time.
There are so many things in our world that can be measured. Sometimes you might feel like the more numbers you know, the more in control of a certain situation you are.
Thankfully, when it comes to businesses, that’s not the case. Don’t get stressed out, when you see the crazy number of key performance indicators that you can monitor. Carefully pick the ones that are relative to your company and don’t forget about our top 5 KPIs that will help you boost your sales ;)
And finally, you don’t have to spend a great deal of time creating videos. If the deadline is approaching and the sales are starting now, make sure you use Perfomante – an affordable platform that will help you create your own Facebook video ads. A team of professionals is going to handcraft a high-quality video ad for you within only one or two days.