mobile application value

1. Submitted by:
Sukrati sharma
(14mmb031)

2. Mobile app company
company keeps a track of the following data:
 Total Downloads – count of the times your app was downloaded from an app
store. Alone this metric demonstrates the amount of interest in your
application. This metric provides an upper bound for the number of active
users you may have at any one time.
 App Users – number of unique application users over a period of time. Shows
how many people actually use the application after downloading.
 Active User Rate – ratio of the number of app users to the total number of
downloads. Helps you understand if you gaining or losing your audience over
time.
 New Users – count of the number of users that first used your app during a
period of time. This is a useful metric in comparison with active user rate to see
if you are staying ahead of the customer attrition curve.
The number of downloads doesn't determine the value or success of a company
but the CUSTOMER ENGAGEMENT is the fundamental parameter.

3. Customer engagement
 Download numbers do not necessarily reflect the
actual number of people using an app.
 Companies can use engagement metrics to see how
customers are using products and this can produce
valuable information, such as the market value of an
app.
 Companies can also use engagement data to
understand how to build an audience of reliable and
returning customers who either generate revenues for
a company or support its business objectives in other,
tangible way

4. “the more people use it while commuting is a core value
for a application company.“
Long-term engagement is fundamental
 identify engagement metrics that can have general
relevance for understanding user behaviours and
improving app effectiveness.
 Customer activity is being monitored and accordingly the
changes in mobile applications is done.
 Retention rate for apps over a given period of time-
Companies should use retention studies to cultivate "long-
term engagements" with their customers because the
longer-term engagements will lead to revenues.

5. Popular Engagement Metrics
 Number of daily or monthly active users- People who have
downloaded the app and use it for its intended purpose
 Number of loyal users- Number of people who open an app
a designated number of times
 Average time on an app-Can include average time in a
section of an app
 Number of items users engaged with-For publishers:
number of items read
 For video distributors: number of videos viewed .
 For e-commerce apps: number of products viewed, put in
shopping cart

6.  Transactions-Number of items purchased,
subscriptions, or registrations
 Transactions per time on app-Number of
transactions during a specific time period of interest
 Retention rate-Percentage of users who installed an
app during a specific time period and are still active
users of the app for a designated time period
 Metrics specific to the service-Examples include
kilometres driven/month by active users of a crowd-
sourced traffic app, or messages sent per month per
active users for a messaging app

7. Parameters to evaluate and improve the BUSINESS.
 average revenues per user
 the number of daily active users.
 the lifetime value of loyal customers.
 the cost to acquire those loyal customers through
marketing activities.
a loyal customer as someone who opens an app three or
more times,(although each business might have its
own definition for this)
VALUE OF A BUSINESS=lifetime value of a customer
less the cost to acquire that user.

8. References
 http://www.webtrends.com/blog/2010/04/top-
metrics-for-mobile-apps-measure-what-matters/
 http://www.fiercedeveloper.com/story/how-do-you-
measure-success-app-customer-engagement-
key/2012-04-09