Tracking the right Key Performance Indicators (KPIs) is essential for growing and optimizing a mobile app. Without data-driven insights, decisions are based on guesswork rather than real user behavior. Whether you’re measuring retention, engagement, or monetization, the right KPIs will guide your strategy and help scale your app effectively.
This guide breaks down the most critical mobile app KPIs, explains why they matter, and shows how to track them using Amplitude—a leading analytics platform for mobile apps.
1. Retention & Churn KPIs
1.1 Retention Rate (Day 1, Day 7, Day 30)
What It Measures:
- The percentage of users who return to your app after a certain number of days.
Why It Matters:
- High Day 1 retention means users find immediate value.
- Day 7 and Day 30 retention indicate long-term engagement.
- Poor retention suggests issues with onboarding, UX, or core functionality.
How to Track It in Amplitude:
- Use Retention Analysis to see how many users return after specific timeframes.
- Segment retention rates by acquisition source, user behavior, or subscription type.
- Identify actions taken by retained users and optimize onboarding to drive those behaviors.
1.2 Churn Rate
What It Measures:
- The percentage of users who stop using your app within a given period.
Why It Matters:
- High churn signals a weak product-market fit, poor onboarding, or lack of user engagement.
- Reducing churn increases lifetime value (LTV) and improves unit economics.
How to Track It in Amplitude:
- Use User Lifecycle Analysis to see when and why users drop off.
- Compare churn between user segments to identify patterns.
- Set up automated retention campaigns targeting users who show early signs of churn.
1.3 Stickiness Ratio (DAU/MAU Ratio)
What It Measures:
- The ratio of Daily Active Users (DAU) to Monthly Active Users (MAU).
Why It Matters:
- A higher DAU/MAU ratio means your app is becoming a habit for users.
- Strong stickiness correlates with higher retention and monetization.
How to Track It in Amplitude:
- Use Stickiness Reports to analyze engagement trends over time.
- Compare stickiness between feature users vs. non-users to see which features drive return visits.
2. User Engagement KPIs
2.1 Daily Active Users (DAU) & Monthly Active Users (MAU)
What It Measures:
- The number of unique users engaging with your app daily (DAU) and monthly (MAU).
Why It Matters:
- Growth in DAU/MAU signals strong user acquisition and retention.
- A decline may indicate issues with engagement or an increase in churn.
How to Track It in Amplitude:
- Use User Activity Metrics to monitor DAU and MAU trends.
- Segment users by demographics, acquisition source, or behavior to find high-value users.
2.2 Session Duration & Frequency
What It Measures:
- How long users stay in your app per session and how often they return.
Why It Matters:
- Longer session durations mean users find value in your app.
- Frequent sessions indicate strong engagement loops.
How to Track It in Amplitude:
- Use Session Analysis to track session length by user cohort.
- Compare high-retention users vs. drop-offs to understand behavioral differences.
2.3 Feature Usage & Event Tracking
What It Measures:
- How users interact with specific features in your app.
Why It Matters:
- Identifies high-value features that keep users engaged.
- Helps prioritize product development based on actual usage.
How to Track It in Amplitude:
- Use Event Segmentation to track how frequently users engage with different features.
- Run Pathfinder Analysis to visualize user flows and identify friction points.
3. Monetization & Revenue KPIs
3.1 Conversion Rate (Free-to-Paid Users)
What It Measures:
- The percentage of users who upgrade from free to paid plans.
Why It Matters:
- High conversion rates indicate effective pricing and onboarding.
- Low conversion suggests friction in the paywall experience.
How to Track It in Amplitude:
- Use Funnel Analysis to track user journeys from sign-up to subscription.
- A/B test different pricing models, trial lengths, and messaging.
3.2 Average Revenue Per User (ARPU) & Lifetime Value (LTV)
What It Measures:
- ARPU: The average revenue generated per user over a given time.
- LTV: The projected revenue from a user throughout their lifetime in the app.
Why It Matters:
- Higher LTV justifies increased ad spend for user acquisition.
- ARPU helps identify high-value segments worth targeting.
How to Track It in Amplitude:
- Use Revenue Analysis to compare LTV across user cohorts.
- Identify which user behaviors correlate with higher spending.
3.3 Subscription Retention & Renewal Rates
What It Measures:
- The percentage of users who renew their subscriptions after a free trial or billing cycle.
Why It Matters:
- Subscription renewals drive sustainable revenue growth.
- A low renewal rate suggests a lack of perceived ongoing value.
How to Track It in Amplitude:
- Use Cohort Analysis to track subscription renewals over time.
- Compare renewal rates between users who engage with key features vs. those who don’t.
4. Growth & Acquisition KPIs
4.1 Cost Per Install (CPI) & Customer Acquisition Cost (CAC)
What It Measures:
- CPI: The cost of acquiring a new user through paid campaigns.
- CAC: The total cost of acquiring a paying user.
Why It Matters:
- Low CPI/CAC ensures marketing spend is profitable.
- A high CPI may indicate inefficient targeting or poor ad creatives.
How to Track It in Amplitude:
- Connect Amplitude with attribution platforms like AppsFlyer or Adjust.
- Compare CPI across acquisition channels to optimize ad spend.
4.2 Viral Coefficient & Referral Metrics
What It Measures:
- The number of users acquired through word-of-mouth referrals.
Why It Matters:
- A high viral coefficient lowers acquisition costs and boosts organic growth.
How to Track It in Amplitude:
- Track referral events (e.g., invite shares, completed sign-ups).
- Measure time-to-first-referral to optimize the referral experience.
Final Thoughts: Growth Comes From Data
If you’re not tracking the right KPIs, you’re making product decisions based on gut feeling, not data.
- Retention & Engagement metrics ensure users keep coming back.
- Monetization metrics help maximize revenue.
- Growth & Acquisition metrics keep customer acquisition efficient.
At Blupalms, we build data-driven mobile apps and help founders scale with Amplitude-powered insights.
Need to track the right KPIs and optimize your app’s growth? Let’s talk.
