Key Performance Indicators to Provide the Marketing Director for Understanding User Engagement in Your New App
To help your marketing director gain a comprehensive understanding of user engagement within your new app, it’s essential to provide clear, actionable Key Performance Indicators (KPIs). These metrics illuminate how users interact with your app, reveal areas for improvement, and guide strategic marketing decisions that drive retention and growth. Below are the most important KPIs to track, alongside best practices for measurement and optimization.
1. Daily Active Users (DAU) and Monthly Active Users (MAU)
What They Measure:
- DAU tracks the number of unique users engaging with the app daily.
- MAU tracks unique users active monthly.
Why They Matter:
They provide a snapshot of your app’s active user base and help determine overall engagement health. Calculating the DAU/MAU ratio (stickiness) highlights how often users return over time—a key retention indicator.
How to Use:
- Aim for a DAU/MAU ratio between 20%-50%.
- A rising DAU shows successful daily engagement; a growing MAU signals acquisition growth.
- Tools like Mixpanel or Firebase Analytics can automate this tracking.
2. Retention Rate (Day 1, 7, 30)
What It Measures:
Percentage of users returning to the app after their first use, commonly measured at day 1, day 7, and day 30.
Why It Matters:
Retention rates indicate user satisfaction and app stickiness. High retention correlates with stronger engagement and lower churn.
How to Use:
- Segment retention by user acquisition channel, demographics, or device.
- Identify drop-off points and address them through improved onboarding, push notifications, or app updates.
- Use cohort analysis via platforms like Amplitude for deeper insights.
3. Session Length and Session Frequency
What They Measure:
- Session Length: Average duration of each user session.
- Session Frequency: How often users open the app in specific intervals (daily, weekly).
Why They Matter:
Higher session lengths suggest deeper engagement; frequent sessions suggest habitual use patterns.
How to Use:
- Analyze session data to distinguish casual users from your power users.
- Compare across segments to tailor feature rollouts or marketing efforts.
- Monitor via analytics platforms such as Google Analytics for Firebase.
4. Screen Flow & Drop-off Rates
What They Measure:
The paths users take through the app and points where they exit or abandon key processes.
Why They Matter:
Spotting screens with high drop-off rates identifies UX issues or friction points that hinder engagement.
How to Use:
- Use user journey mapping tools and heatmap software like Hotjar or FullStory.
- Prioritize redesigning screens or processes causing user exit.
- Align marketing messages to encourage smoother flows.
5. Feature Usage Rate
What It Measures:
Percentage of users engaging with specific app features or functionalities.
Why It Matters:
Reveals which features drive engagement and which may need better promotion or improvement.
How to Use:
- Segment users by feature engagement to personalize onboarding and support.
- Monitor feature adoption over time to assess marketing effectiveness or feature appeal.
- Insights from feature usage can be integrated into product roadmaps.
6. Conversion Rates & In-App Purchases
What They Measure:
- User progression through desired conversion funnels like sign-ups, purchases, or subscription upgrades.
- Revenue-generating actions inside the app.
Why They Matter:
Understand how effectively your marketing drives monetization and which steps lose users.
How to Use:
- Conduct funnel analysis to identify bottlenecks preventing purchases.
- Use A/B testing on pricing, offers, or UX flows to boost conversions.
- Track alongside Average Revenue Per User (ARPU) with tools like RevenueCat.
7. Customer Lifetime Value (LTV)
What It Measures:
Projected revenue generated by a user throughout their relationship with your app.
Why It Matters:
Helps evaluate whether your marketing spend is justified and identifies the most valuable user segments.
How to Use:
- Compare LTV with User Acquisition Cost (UAC) to ensure cost-effective growth.
- Use cohort analysis to optimize marketing budgets toward high-LTV users.
- Platforms like Adjust support LTV modeling.
8. Churn Rate
What It Measures:
Percentage of users who stop using the app within a specific timeframe.
Why It Matters:
High churn signals problems with retention, product-market fit, or competitive pressures.
How to Use:
- Track churn continuously and analyze behavioral data or feedback to diagnose causes.
- Implement re-engagement campaigns via push notifications or email.
- Tools like Braze enable churn prevention messaging.
9. Net Promoter Score (NPS)
What It Measures:
User likelihood to recommend the app, reflecting satisfaction and brand loyalty.
Why It Matters:
Gives qualitative context to engagement KPIs, revealing user sentiment and advocacy.
How to Use:
- Collect NPS regularly through in-app surveys or platforms like Zigpoll.
- Segment NPS results to tailor marketing and support strategies.
- Track trends to measure the impact of app updates.
10. User Feedback & Sentiment Analysis
What It Measures:
Direct user comments, reviews, ratings, and sentiment from sources like app stores, social media, or in-app feedback.
Why It Matters:
Provides qualitative insights not captured by usage metrics alone, identifying pain points and feature requests.
How to Use:
- Use sentiment analysis tools such as Clarabridge to analyze feedback.
- Prioritize fixes and feature improvements based on user sentiment trends.
- Combine with quantitative data for a holistic view.
11. Funnel Analysis
What It Measures:
User progression through key app events—from onboarding to core actions like in-app purchases or content interaction.
Why It Matters:
Identifies specific stages where users drop off, helping optimize user journeys and marketing funnels.
How to Use:
- Visualize funnels with tools like Heap Analytics.
- Test changes to improve conversion rates between funnel steps.
- Align marketing campaigns to boost funnel completion.
12. Push Notification Engagement
What It Measures:
Open rates, click-through rates, and conversions derived from push notification campaigns.
Why It Matters:
Push notifications can revive inactive users and increase session frequency but must be optimized to avoid user fatigue.
How to Use:
- Segment notifications by behavior or preferences for relevancy.
- Measure impact on retention and session frequency.
- Platforms like OneSignal provide analytics for push campaigns.
13. User Acquisition Cost (UAC)
What It Measures:
Average spend to acquire a new user via various marketing channels.
Why It Matters:
Informs budget allocation and ROI, aligning acquisition spend with LTV.
How to Use:
- Monitor UAC regularly relative to LTV to maintain profitable growth.
- Optimize channels based on cost efficiency and quality of users acquired.
- Use acquisition analytics from platforms like Appsflyer.
14. App Performance Metrics (Load Time, Crash Rate)
What They Measure:
Technical KPIs related to speed, app crashes, and overall stability.
Why They Matter:
Performance issues degrade user experience, leading to churn and poor engagement.
How to Use:
- Monitor app stability and load times with tools like Firebase Crashlytics.
- Prioritize urgent bug fixes and performance optimizations.
- Track how performance improvements impact engagement metrics.
15. Social Sharing & Virality Metrics
What They Measure:
Number of shares, referrals, and user-generated content distribution through the app.
Why They Matter:
Indicates organic growth potential and user enthusiasm, amplifying marketing reach at low cost.
How to Use:
- Track referral conversions and sharing frequency.
- Incentivize sharing with rewards or gamification.
- Analyze viral content features to replicate success.
Summary for Marketing Directors
Providing your marketing director with these KPIs will equip them to deeply understand user engagement patterns, identify growth opportunities, and build effective acquisition and retention strategies. Combining quantitative app analytics with qualitative insights from user feedback tools like Zigpoll enhances decision-making.
Action Steps:
- Regularly report on DAU/MAU, retention rates, session metrics, and conversion funnels.
- Layer in user satisfaction metrics such as NPS and sentiment analysis.
- Monitor acquisition costs and LTV to optimize marketing spend.
- Use app performance data to ensure technical excellence supports engagement.
- Align marketing campaigns with insights from funnel and push notification analyses.
Investing in robust analytics platforms like Firebase Analytics, Amplitude, and Mixpanel, alongside user feedback collections through Zigpoll, helps maintain real-time visibility into user behavior and preferences.
By focusing on these KPIs, your marketing director will be empowered to increase user retention, boost engagement, and drive the overall success of your new app.
