Finding an app analytics platform that suits your business is essential, but it is also important to be able to make sense of the data that these tools generate for you.

A better understanding of data analysis will allow you to test your app’s performance and functionality to then know if your app can be an effective problem-solving tool for your users – and if not, what needs to be improved.

But what does one do with the endless metrics and data presented to us? And how does one link the results from our app analytics tools to actual improvement points for the further development of our apps?

We will briefly discuss the best ways to analyze mobile app analytics data.

But first, let’s look at some crucial metrics and KPIs you should be tracking when using mobile app analytics, to make the most of the tool:

Retention rate

This metric describes the percentage of users that still use your app, while also giving you the number of customers you are losing. Retention rate is as important as your user acquisition rate. As much as attracting new users should be an integral part of your app marketing strategy, you want to hold on to those loyal users that are at the core of your app’s success, avoiding your churn reaching higher rates.

User churn & uninstall rates

User churn provides a ratio between the number of loyal app users, after a certain period of time, usually a month, and users who have stopped using your services.

According to Localytics data, in 2016, aggregated across multiple app categories, the average churn rate was 36% for one month and only 20% over the course of three months.

Tracking the number of people who uninstall your app is also vital to understanding why they decided to uninstall your app, and at what point.

Average revenue per user (ARPU)

ARPU reports on how much revenue your app generated per user, which is an extremely important metric, as it tells you how much money you are making from each user within a specific timeframe.

This metric is calculated by dividing the total revenue of your business within a selected period by the average number of users within the same set time frame.

Return on investment (ROI)

The ROI rate represents what you have spent against how much you have actually earned, evaluating the efficiency and profitability of your investments and efforts.

This measure is the difference of the benefit of your spending, divided by the actual sum of your investment.

User growth rate

This figure represents the number of new users acquired within a specific period, which is another metric you want to look out for to measure the success rate of your app.

Session length

A session is the time actively spent by a user on your app before closing it or switching to another app. The metric also describes the length and frequency at which a user interacts with your app, providing insights into trends of your services.

According to Opera Mediaworks, in 2016, the average app session length was five minutes.

Daily & monthly active user

You may also want to focus on the daily and monthly active user rates, as they measure the number of users that open and engage with your app on a daily or monthly basis.

It is a metric that also measures growth, churn and an active user’s depth of engagement level.

In the app world, a prime measure of an active user would be them making an account in your app, just how making a money transfer would be a sign of engagement on an online banking app.

So it is as important as knowing how often a user accesses your app.

Now that you know the key metrics you want to prioritize when analysing your app data, let’s dissect the best methods on how to use mobile app analytics tools:

Map out your user’s journey

A user’s journey describes how a user cycles from discovering, installing or purchasing, to using the services of your app. Defining the steps of this journey is crucial to getting a better insight into your user’s behaviors and how they typically interact with your app and its features.

Once you have mapped out the user funnel, along with the data gathered with analytics tools, you can easily spot where your users churn, what peaks their interest as well as their preferred features.

This analysis allows you to efficiently optimize your user journey, which will enhance your users’ experience, generating more revenue and driving those conversion rates.

Track only relevant metrics

As we have listed countless of valuable KPIs and metrics above within the different types of analytics tools, it is useful to select the measurements that will add the most value to your unique performance optimization.

You want to focus on the metrics that matter, without wasting too much time and money on data that are not part of the usual functions of your app. These metrics are less likely to add value to your optimizations and enhancements.

Ask yourself questions that are tailored to your individual app requirements. These questions should outline if certain efforts are being made and accomplished towards your company goals.

Ensure that you are picking up on the data provided by the mobile analytics tools that specifically answer those key questions.

Ace the initial user experience

You know your app will be the ultimate game changer to anyone who uses it. But how will users know its potential?

Your marketing efforts have done a fantastic job in attracting users and impressing them well enough to hit the ‘Get’ button. But the challenge and true magic lies within introducing your new customers to the valuable services that your app ad promised, in the best way possible.

As it is said, first impressions are everything. So the initial experience in the onboarding or signing up stage is the determining factor of whether or not your users will continue using your app.

For example, improve the onboarding experience by simplifying its process, making the first actions as simple as clicking one button to activate their account. Refer to the personas of your target users and tailor the sign-up stage based on those.

Once you have enhanced this crucial part of your user journey, analyze the activation metrics that inform about the rate (and speed) at which your acquired users turn into active users by an activation event.

Onboarding metrics typically include:

Activation

Install to Registration

Download to Launch

Cost per Registration rates

Make sure to track these KPIs and understand if users can easily go to the next level of your app from the onboarding step.

Take advantage of A/B testing

After you have gathered all of the data from your analytics, A/B analytics is definitely a tool you want to take advantage of to guarantee positive responses to any enhancements you make based on your KPIs.

A/B testing works by dividing your customers into two or more groups, and testing how a new feature, which may involve changes to the design or experience, impacts user behavior. This way, you will be able to identify which option works best for users and what function is more preferred, before you make the permanent change.

When testing the new feature on a control group within your app, make sure not to disrupt the flow of the app that may put off your customers. See that you make the transition as smooth as possible.

Mobile analytics for new ideas

App analytics tools don’t only have to give you ideas on how to change your app, but also to inspire you to take your product to new levels.

Analyzing key metrics may illuminate entirely new opportunities, motivating you to find new initiatives to grow your app further.

You may find some pages are driving less traffic than others, or that some services are being used more. You can expand the stronger functions and give your customers more of what they want.