5 Mobile Marketing Measurements Helps to Startups

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5 Mobile Marketing Measurements Helps to Startups

Measurement is essential to advance a new project. There are many metrics that doesn’t show the real and necessary situation of tech-based new startups. Some of the metrics are not fact-based those are called as “vanity metrics.”

Measuring of the right metric is very important to detect startups real and current performance. Also, that is showing that if you are doing well or not. It is the main thing to boost your improvement. Wrong data lead you to fast ending of your investment.

 5 marketing metrics that all startups should measure will be discussed in this article with refers to Josiah Humphrey’s article “5 Mobile Marketing Metrics Startups Should Track”.

1-ARPU and LTV

LTV(Lifetime Value of a Customer) shows financial value of your app and how much each app user is worth to your company along the span of her lifetime usage.  In other words, it is projected revenue that a customer is expected to generate during his lifetime.

It can be calculated by multiplying yearly cost of your service to a customer by how many years she buys your service. As an example if your service price 50$ to a customer for 3 years, its LTV is calculated as 150$ for your company.

LTV is one of the crucial metrics that measures efficiency. For repeatable and scalable business organizations to get capacity to market and self-sufficiency which promotes to growth, LTV is necessary measurement model.

At the beginning to get concrete data and measure your LTV could be hard. To overcome this, you can check your competitive investments how they look like. Also your LTV should be 3 times bigger than your Customer Acquisition Cost(CACs).

Average Revenue Per User(ARPU) is a similar metric to LTV that ARPU measures revenue generated per user. It provides startups with analysis of a company’s revenue generation and growth at the a unit level. It help determining which products are high or low revenue generator. 

2-CPI and CPLU

Cost Per Install (CPI) measures an amount of money that a company spends on gaining an user of an application.  It is happened by organizing CPI campaigns that are specific to mobile applications. Publisher puts digital ads across a range of media in order to drive installation of the advertised apps. The brand is charged a fixed or bid rate only when the application is installed.

It is calculated as such:

The money invested on ads/ total installs = cost per install

For instance, if you spend on ads for 10, 000$ for 1000 user, we calculated CPI by dividing 10,000 by 1000 and the result is 10$ CPI.

Cost Per Loyal User (CPLU) is a metric of acquiring a “loyal” or active user. It defines generally gaining a user who opens an app at least 3 times.  

IT is useful to apply both of metrics of CPI and CPLU. It facilitates to see how many people installed your app and how many of them used it actively. 

Analyzing in conjunction with your ARPU and your CPLU can help you to calculate:

i) The return on investment (ROI) for your marketing efforts 

ii-) The breakeven point .e., is the point at which your revenue exactly matches your expenses. If you observe that you reach the point beyond the breakeven point that show you start to promote. 

3-User Retention

There are 5 million apps available on Google Play Store and Apple’s App Store. However, 72 hours after installing an app, 4 person out of 5 never use the app again. For that reason, user retention is hard to achieve for an app. 

An estimation by Apptentive proposes that only 4% of iOS and Android users continue to use an app 12 months after first downloading it. Thus, you should do everything keep your user after installing your app. 

Customer retention shows your app success in the long run. Maybe, there are 1 million download of your app; bu how many of them currently using the app is more important. It is also important for boosting the LTV and increasing total revenue.

4- Engagement

Engagement is qualitative metric that measures what extent users engage in your app. It is important to see quality of interaction between the users and application. It is not a specific metric. It is measured by gathering data from other metrics and sources:

  • Session length and interval,
  • App interactions,
  • User participation,
  • and app screens per session.

The biggest apps achieve the most impressive engagement rates as expectedly; because it is important to be a part of lives of users. If an app is needed and make people’s life more easier, it is easy to be engaged in people’s mobile experience.


Net Promoter Score(NPS) is one of the top metrics that NPS measures customer satisfaction and app virality. It is measures by asking your customers such a question that how likely do you recommend our app to others?

You can determine a scale from 0 to 10. 10 shows the most enthusiastic customers, whereas 0 shows vice versa. There are promoters their score is between 9 and 10, also passives their score changes from 7 to 8 and lastly detractors their score is between 0 and 6.

Total NPS is calculated by subtracting the total number of detractors from the total number of promoters.

This measure imply your viral potential of your app. Also, it indicates our application is whether suggested or not to others. If you have high score that means you will likely have new more customers in the short run.


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