What are the KPIs for mobile apps in e-commerce?

KPIs for mobile apps

It is very vital as to how you measure the success of your mobile e-commerce app. You will need precise measures to indicate and analyze what works in your mobile app and what needs further improvement. For that purpose, you may use key performance indicators (KPI).They will help you evaluate and measure your mobile app’s performance.  Monitoring mobile app KPIs are essential for the marketing and the overall development of your mobile e-commerce app. The analyses and reports of mobile app KPIs will also help you grow your revenues as you will track and advance the performance of your mobile app. 

Below find e-commerce KPIs that will help you reinforce your business. 

Retention rate

Customer retention is a measure of customer loyalty. This measure reports the percentage of customers your business is retaining. It takes a group of users who have made purchases from you in an earlier time frame (for instance, months ago) and determines the proportion of those who are active at the period of measurement. Active users are those who made a purchase, for example, in the current month. You can also calculate the retention rate based on app download.

This metric will showcase how many people downloaded your app in the last month and how engaged people are after downloading the app. You may also measure retention based on first user logins. The metric will indicate to what extent your app’s messaging, user interface, and integration are efficient at retaining people. A high retention rate shows that your app generates a value that your users want to use over and over again. It influences the foundation of your marketing strategy. Also, it plays a crucial role in predicting the performance of your application over time.

To calculate retention rate, you need to divide the number of app users within a set time by the number of users from the same unit who used the app within a previously designated time. 

Customer acquisition cost (CAC)

CAC is the price you pay for acquiring a customer. Customer acquisition costs include the advertising costs, the budget for the marketing team, creative and technical costs, production costs, to name a few. Calculating CAC is very simple. You need to divide all the costs spent on acquiring new customers by the number of acquired customers. For instance, if you spend $ 1000 on marketing per year and acquire 1000 customers, the CAC is $ 1.


Users may download an application, but it does not mean they completed the installation process. Hence, it is essential that you monitor the actual installs. Users may also uninstall your app without providing any feedback about the reasons. If you started losing clients after specific updates to your application, you might question what could be causing that problem.

Daily Active Users 

Now that you already know how many people downloaded your app, it is vital to determine how valuable your app is for those who installed it. One way to determine that is to calculate the average number of daily active users. The number of daily active users shows the number of users who use your mobile app every day. Having high daily active users means that your app became a necessity and an essential, everyday tool for your users. 

In contrast, having fewer daily active users is a concerning signal that you have to focus on communication with your customers and improve your app’s overall performance. 

Calculating the number of DAUs over a month or year is a measure to determine your mobile app’s valuation or future success. 

Session Duration

Calculating the session duration will give help you know how much time your customers spend on your app per day. This metric will provide you with an overall concept of how your mobile app performs and engages users. If your customers are using your app a couple of times a day for extended periods, it can indicate that your app is user-friendly and provides a good customer experience. Analyzing the session durations may also help marketers to classify engaged and loyal users versus less engaged users.

Customer Lifetime Value (CLV)

You can calculate Lifetime Value by multiplying the average conversion rate by the average conversions over time and multiply it by the average user lifetime.  

Customer Lifetime Value is the value each customer creates for your business. This metric will allow determining what value (income or profit) you can anticipate from your average user. In order to enhance the customer lifetime value, it is necessary to improve the customer experience. That’s a step for gaining more loyal customers. 

You may focus on how frequently your customers make transactions and determine the value of those transactions. It is also important how long your users typically remain as users. For instance, a mobile app that targets people with specific age limitations may anticipate keeping their users up until a certain age. After that age, companies should expect their target audience to change. Therefore this metric is essential for enhancing your marketing and overall business strategies. 

The average revenue per user

In order to calculate the average revenue per user, you should divide the lifetime revenue of the app by the number of lifetime users.

The average revenue per user metric will show the average profit generated per user from in-app purchases. It may also include monetization, including subscriptions, paid downloads, and ad clicks. In order to measure your ARPU, you should identify and target a group of users. You may group them based on the installation date, geographic region, or any other characteristics. Once you defined the groups, you need to divide the total revenue generated across a specified time by the total number of users. 

Above mentioned metrics will help you analyze the engagement with your app users, increase the financial outcomes, and improve the overall performance of your mobile app.