This article was originally published on Director Customer Success – Shree Mijarguttu.
Fast growing tech-enabled B2B and B2C startups must consider capturing metrics that can help them measure and track the health of their business.
Shree Mijarguttu, BOSFramework.
The following list has been prepared to serve as a guide for BOS customers to consider as they think about developing their mobile app or web application.
We have identified 18 metrics and categorized them into 6 categories:
+ Business Metrics
- Metrics indicating the cost of acquiring customers, keeping up with revenue, and the financial viability of the app
+ App Metrics for Engagement
- Metrics that indicate how your target users are engaging with your app
+ App Metrics for Conversion
- Metrics that indicate user conversion rates to determine if you are able to deterministically monetize your app/ able to increase its valuation
+ App Performance Metrics
- Metrics that indicate the technical soundness and reliability of your app
+ Vanity Metrics
- Metrics which does not affect your bottom line of either generating revenues or enhancing the engagement rates
+ Your True North Star Metric
- The one to three metrics which are most critical indicators of your success. You want to publish these to your investors and community to indicate your overall health
SaaS/ App Metrics
| Metric | Definition & Formula to Calculate | Responsibility |
| Business Metrics | ||
| Cost of Acquiring a Customer (CAC)/ Cost per Install (CPI) | Average money spent for each download Total Marketing Cost/Total Acquired Users | Business |
| Lifetime Value (LTV) | Total amount of money that you expect to make from a customer until they stop buying from you Avg value of Conversion * Avg. No. of Conversions over a period of time * Avg. Customer Lifetime | Business |
| Average Revenue Per User (ARPU) | The amount of revenue your average user/ paid user generates for you at a given time Lifetime Revenue/ no. of Lifetime Users | Business |
| Average Annual Contract Value (ACV) | Total revenue/ Total number of customers | Business |
| App Metrics for Engagement | ||
| Daily Active Users (DAU)/ Monthly Active Users (MAU) | DAU/MAU is the measure of the number of unique users on your app daily/monthly. It helps measure User Engagement Number of users who perform a specific (set of) actions on your app on a daily / monthly basis. | Business/ Marketing |
| Retention Rate | This is to understand the usefulness of your app to your users. Whether or not they are active, are they coming back to your app when they need the functionality? (No. of users at the end of a time-period — No. of users acquired during this period) / No. of users at the start of the time-period X 100 | Business/ Marketing |
| Stickiness Ratio | How much value do your users derive from your app? Daily Active Users (DAU) / Monthly Active Users (MAU) x 100 | Business/ Marketing |
| Average Session Length | Average amount of time each of your users spends on your app. Total duration of all sessions (in seconds) during a specified timeframe / total number of sessions during that same timeframe | Business/ Marketing |
| Churn Rate | The rate at which your users uninstall your app or even cancel / downgrade subscriptions. 1 — Retention Rate | Business/ Marketing |
| Bounce Rate | How many of your users are abandoning your platform without engaging with your content; Getting off the first page they enter from? Total no. of Visits to only one page | Business/ Marketing |
| Exit Rate | From which exact screen (the last screen) did users drop-off? Total no. of Visits to a screen / total no. of exits or drop-offs from that particular screen | Business/ Marketing |
| App Metrics for Conversion | ||
| Goal Completion | The number of users who complete specific goals inside your app This requires in-depth study of user journey and interaction across pages (HotJar Videos) | Business/ Marketing |
| Time to Goal Completion | The amount of time your users take to complete your pre-defined goals in your app HotJar Videos | Business/ Marketing |
| Average Order Value (AOV) | The amount of money spent by your customers on every single order they place on your app Total Revenue / No. of Orders | Business |
| App Performance Metrics | ||
| App Load Time | The time it takes for your app to load | BOS |
| App Crashes | Unexpected shutdown of your app How often your app crashes?How many times a day it crashes on users?How many users are affected by your app’s crashes?What were your users doing when the crash occurred? | BOS |
| App Latency | The amount of time it takes for an app to make a request (once a user clicks on something) and get a response from the API | BOS |
| Vanity Metrics | ||
| Average Screens Per Visit | Number of screens visited by your users on an average Total Page Visits/Total Number of Unique User Sessions in a given time-period | Marketing |
| No. of Registered Users | Total number of users that signed-up on your app since the day of the launch: This is an ever increasing number | Business |
| App Downloads | Total number of downloads on your App Store/ Play Store | Business |
| Average Daily Sessions per DAU | shows you the number of times your daily active users open your app | Marketing |
| Your True North Star Metric | ||
| The Metric that you identify | This is generally a customer engagement related metric which helps increase your revenue or user count and thereby your valuation | Business |
Please note:
Not all metrics may be applicable to your business. Our Product Managers will work with you in thinking through the most relevant metrics for you.
The BOS Cloud Enablement Platform has been developed to capture the necessary data that is required for generating these metrics. Additionally, our team will build your app with the necessary third-party software integrations (such as Google Analytics and HotJar) to aid the study of user behavior.
Converting this data into business and market metrics and tracking them is outside the capability range of the BOS team. You will have to engage a marketing agency that specializes in converting the data into relevant metrics and tracking business progress for you.
In case of questions, do not hesitate to get in touch with your customer success manager.
Sincerely,
BOS Customer Success Team
