Measure app success by tracking key performance indicators—such as revenue (LTV, ARPDAU), retention, and engagement—using reporting tools and cohort analysis.
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There are several ways to measure the success of an app's business strategy. The most complete picture involves measuring a variety of factors including revenue, retention, and engagement.
Tracking revenue over time
Lifetime (LT) - Amount of time users spend in an app before they stop using it, completely
Lifetime Value (LTV) - Value generated by each user over their lifetime within the app
These metrics show you how your monetization strategies work per user for their entire life cycle. For app developers running user acquisition campaigns, these metrics can be compared to the effective cost per install (eCPI) and can help determine whether an app is making or losing money.
Tracking ARPDAU
Average revenue per user (ARPU) is used to determine the effectiveness of a monetization strategy. An even more specific measurement is average revenue per daily active user (ARPDAU). These measurements can help determine the success of a specific strategy, ad implementation, or of the strength of an in-app economy. You can track ARPDAU in the User Activity reports.
Tracking retention
Retention can show the impact a business strategy has on the number of people who continue using an app regularly. Monetization is only one element that impacts retention; but depending on your choices and implementation, it can have a significant impact.