User acquisition metrics enable marketers to track performance and make strategic changes that will push them towards their company goals. You can work with mobile measurement partners (MMPs) such as Adjust, AppsFlyer, Koshava and Singular to gain critical insights that will optimize performance – all you need to know is which metrics are important to your targets. In this guide, we cover the importance of user acquisition metrics and how AVOW can help.
Why are user acquisition metrics so important?
User acquisition metrics are critical for making data-driven decisions that will drive growth and enable you to acquire a large number of users. Developing a marketing strategy with user acquisition metrics that align with your targets makes it possible to know how close you are to achieving your goals and what needs to be improved. For example, this helps you make strategic changes that will boost Lifetime Value (LTV) and generate Return on Investment (ROI).
Moreover, by tracking user acquisition metrics that are relevant to your goals, you can continually develop your strategy over time. This is because you will have the data that reveals behavioral trends, allowing you to make data-driven decisions that optimizes your strategy.
13 user acquisition metrics you need to know
There are several app metrics that may be useful to track when developing your user acquisition strategy. Here are 13 that every marketer should know.
- Installs: An install occurs when a user downloads your app and opens it. You can track the number of installs generated as a result of your campaigns, giving you a measurable result that shows the efficacy of your marketing efforts. A user who installs your app independently from your marketing efforts, this generates an organic install.
- Cost per Install (CPI): This is the cost for generating an app install, to be paid by the advertiser to the publisher.
- Cost per Acquisition (CPA): This is a measurement of how much it costs to acquire each user. Marketers should aim to lower their CPA while acquiring high-value users.
- Click-Through Rate (CTR): This is a percentage that shows how many people click on your advert (ad) after they are delivered an impression. This is an important measurement that shows the efficacy of your creative and whether a publisher’s audience is interested in your product.
- Conversion rate: Usually a conversion is defined by installs, occurring when a user clicks on your advert (ad) and installs your app. However, a conversion can also be in relation to any desired action you choose. For example, your conversion could be when a user makes an in-app purchase or subscribes to your newsletter. Your conversion rate is the percentage of users who convert by completing that desired action.
- Retention rate: This is the percentage of users who have been retained (by remaining active in your app) after a defined period of time. Many marketers will keep track of retention rates after Day 1, Day 7 and Day 30 to identify when most users stop using their product. This is a smart starting point to identifying ways your app can be improved. For example, if you can have a low retention rate after Day 1, there may be an issue with your onboarding experience. However, what is defined as a high or low retention rate is determined by the nature of your app. On the one hand, travel apps may have shorter retention rates because users will use them for boarding passes and similar information that has short-term use. On the other hand, utility apps, such as currency converters, or a flashlight app, have long-term practical uses and may expect a higher percentage as their benchmark.
- Churn: This is the percentage of users who have become inactive in your app after a defined period of time. Your churn rate is the opposite of your retention rate. Churn and retention can both be analyzed for different types of users by segmenting your audience.
- Uninstall rate: This metric shows how many users have uninstalled your app from their device.
- Lifetime Value (LTV): LTV measures the average revenue generated per user throughout their entire life cycle with your app. This informs how much revenue you can expect from each user and which campaigns delivered users with higher LTV – making them more valuable marketing assets. It is a marketer’s aim to prolong LTV and get higher ROI per user over time.
- Return on Investment (ROI): Your ROI is how much revenue you receive in return for your investment when marketing to users.
- Return on Ad Spend (ROAS): Your ROAS is the average revenue you receive from each user. You can use this metric to learn which campaign is delivering the greatest return.
- Average Revenue per User (ARPU): This tells you how much revenue has been generated on average for each user. It may also be helpful to look at ARPU by segmented audience groups, such as users from certain regions or demographics.
- Average Revenue Per Daily Active User (ARPDAU): This metric shows you the average revenue generated for each user over the course of a day. This is a valuable metric for identifying how changes to your app affect ARPU.
How AVOW can help you track user acquisition metrics
AVOW helps clients leverage alternative app stores to acquire high-value users at a low CPI. We have partnerships with the leading OEMs (original equipment manufacturers) around the world, covering 42% of the global Android market. AVOW has relationships with MMPs to ensure data flow is clear and can be used to optimize your campaigns.
We aggregate inventory across these alternative app stores and provide access to alternative app stores by companies such as Samsung, Huawei, Xiaomi, Vivo and Oppo. Throughout the entire campaign cycle, our team provides expertise in OEM mobile inventory to help you acquire users through these stores.
What are the benefits from OEM marketing?
There are many ways you can use alternative app stores to achieve your user acquisition goals. However, there are the critical benefits of OEM marketing that every marketer needs to know.
- Marketers can expand their reach: Leveraging alternative app stores grants you access to untapped markets that collectively include over 1.5 billion DAUs. In an article focused on scaling your business with OEMs, Avow Co-Founder Caio Balbino explains that “the unchallenged oligopoly of Google, Apple, Facebook, and Amazon, also named GAFA, owns more than 70% of the US total digital marketing expenditure. This underlines the challenge mobile marketers face when pushing for greater visibility and achieving their user acquisition targets. Fortunately, there are alternatives to GAFA platforms mobile marketers can use to help achieve their company goals and increase ROAS.”
- Leverage dynamic targeting: Marketers can benefit from the advanced on-device targeting capabilities offered by alternative app stores. Avow’s OEM partners make it possible for ads to be displayed by factors such as location, appographic, keywords and social demographics.
- Choose from a variety of advertising formats: Marketers can engage users with a number of creative ad formats on each alternative app store. There are several ad units that can be tailored to a specific target audience, such as native ads, app search ads, splash ads, icon ads, banner ads and push ads.
Learn more with “A Complete Guide to Ad Formats for Alternative App Stores”
Conclusion
User acquisition metrics enable marketers to track performance and make strategic changes that will push them towards their company goals. User acquisition metrics you need to know include installs, conversion rate, retention rate, churn and LTV. You should also be aware of CPI, CPA and CTR.
AVOW can help you achieve your user acquisition targets through OEM marketing. We are partnered with the world’s leading alternative app stores and offer a consultative approach to our clients – ensuring marketers get the most out of our expertise in OEM inventory.