Top Acquisition Metrics to Measure on the Analytics Platform
In the app and game development industry, understanding acquisition metrics is paramount to success. From monitoring downloads to calculating return on investment (ROI), each metric provides crucial insight into the effectiveness of your acquisition strategies. Let’s look at key metrics, what they mean, how to calculate them using analytics platforms, and how to improve them.
Downloads
Downloads refer to the total number of times an app has been downloaded to a user’s device over a given period of time. This is a fundamental indicator showing user interest and campaign effectiveness.
Some analytics platforms allow you to further segment your data by country, device, source, etc. They may allow you to further differentiate this metric into first time downloads and redownloads. Other platforms don’t imply this at all and consider downloads as installations. We will not stop on this indicator, since it is closely related to the installs metric.
Installs and New Users
Installs measure the actual installation on a user’s device, while new users denote those who open the app for the first time. These metrics provide insight into how many users found the product valuable enough to go through the installation process.
Monitoring installs and the number of new users can help companies understand conversion rates from downloads to installation and actual app testing, allowing for targeted optimization of installation and user onboarding processes. Like download metrics, they help you analyze the effectiveness of your marketing campaigns.
Calculating in devtodev
devtodev tracks new users and presents the data in Acquisition section, aiding in understanding user traffic sources.
An overview of the metric can be found in the Acquisition -> Dashboard and Acquisition -> Monitoring section. The number is conveniently broken down into paid and organic user traffic.
Ways to Improve
Strategies to boost downloads and installs include optimizing app store presence, encouraging positive reviews, and strategic paid acquisition.
Virality or K-factor
The K-factor metric is also known as the “virus index” or “virality index”. This metric quantifies the rate at which users invite others and how many of those invitations result in actual installs.
Calculating the K-factor
The formula is straightforward yet impactful:
- K-factor = Sent invites * Conversion
Here, “Sent invites” represents the average number of invitations sent by a user, and “Conversion” is the rate at which those invitations turn into actual installs.
Understanding the K-factor opens doors to predicting user growth cycles. The number of new users brought in through virality can be calculated in subsequent cycles:
- New users (1) = Active users * K-factor
- New users (n) = New users (n-1) * K-factor
As the K-factor increases, so does the pace of audience expansion. This ripple effect continues as new users invite their friends, who then invite others, creating a snowball effect of growth.
Ways to Improve
Increasing the K-factor involves incentivizing user invites, creating shareable content, and enabling easy sharing of achievements within the app.
Return On Investment (ROI)
ROI, or Return on Investment, stands as a fundamental measure assessing both the efficacy of your strategies and the quality of traffic directed to your project.
While ROI can be viewed as an acquisition metric, it primarily gauges the returns derived from invested capital rather than directly addressing acquisition efforts. In essence, ROI is a metric that shows you how much return you get on the money you invest.
Calculating ROI
Basic formula:
- ROI = (Revenue — Investments) / Investments
A positive ROI indicates that your investment has paid off.
Or a simplified approach:
- ROI = (Revenue / Investment) * 100%
In this calculation, the ratio ROI > 100% will indicate payback.
Ways to Improve
Optimizing ROI involves monitoring user behavior metrics, comparing ROI across channels, and considering long-term investment planning.
Conclusion
Acquisition metrics like Downloads, Installs, K-factor, and ROI offer a holistic view of app performance. Leveraging analytics tools like devtodev and focusing on these metrics empowers developers and marketers to refine strategies and drive sustainable growth in the competitive app market.
