Every software development project has an end-goal. To turn those goals into a reality, companies developing new mobile or web apps can use Key Performance Indicators (KPIs) as a way to measure the success and overcome common challenges of a software development project.
Software engineering KPIs should be used to answer questions and test hypotheses aligned to specific project goals and business values. Every aspect of a project can be measured, from user engagement, close rates, revenue generation as well as customer feedback.
Clear and transparent KPIs have the potential to drive positive change and move software projects in the right direction. Continue reading to discover seven of the best software quality KPIs to make a success of your next software project.
Why Does Your Project Need Agile Software Development KPIs?
Agile software development focuses on a specific framework to optimise the quality of a digital product at every stage of the production chain. An agile approach has the potential to benefit a software project by providing: a clear focus on the end-user, realistic costs and scheduling, predictable delivery times, ongoing transparency as well as opportunities for the project to change as the scope evolves.
Agile KPIs provide clear insights into the productivity and success of a new app at multiple points throughout the development lifecycle. Supported by clear metrics, companies can strategically plan the direction of a software project while easily tracking team performance in the process.
7 KPIs to Measure the Success of Your Shiny New App
Now we’ve covered the benefits of having clear KPIs to measure the success of your next software project, it’s important to understand what to measure to identify the key areas of improvement.
1. Retention Rate
The retention rate can be imagined as the ‘stickiness’ of your digital product, referring to the percentage of customers your app successfully manages to retain. Measuring the retention rate allows you to clearly see how many customers you’re losing to churn, with scope to determine the reasons why users aren’t sticking around.
Retention is a more insightful metric than just downloads or acquisition because installs aren’t reflective of your success if you’re not retaining users. You can measure this KPI by calculating the retention rate based on how many people downloaded the app over the previous month.
2. Churn Rate
Did you know that the average app loses 77% of its daily users within the first 3 days after installation? Shockingly, within 30 days the number of uninstalls climbs to as high as 90%. Companies looking to develop an app people love must accept the realities, no matter how harsh they may seem.
Using churn rate as a metric allows you to determine the percentage of customers that are actively choosing to stop using your app. Churn rate also offers key insights into ‘customer lifetime value’ as well as retention rates.
3. Daily Active Users (DAU)
Opting for a KPI that measures Daily Active Users (DAU) is useful in determining how indispensable your app is for those who have downloaded it. DAU refers to each individual person using an app rather than the number of sessions.
This KPI works by counting each person one time, regardless of whether they use the app once per day or hundreds of times per day. When combined with other KPIs, DAU metrics provide an excellent snapshot of your acquisition, retention, and churn levels on a daily basis.
4. Monthly Active Users (MAU)
Like DAU, monthly active users (MAU) is able to inform software developers of the unique number of people who use the app. The main difference between this and the previous metric is that MAU focuses on the previous 30 days.
5. Return On Investment (ROI)
Measuring Return on Investment (ROI) has a number of benefits, including building an efficient budget, costing the project while it is in motion and helping to plan the next strategic move in your software development project. ROI is useful for measuring success over a period of time and removes the guesswork out of making future decisions about the direction of your project.
6. Cost Per Acquisition (CPA)
Cost Per Acquisition (CPA) is closely tied to ROI. Throughout the lifecycle of a software project, savvy companies will want to stay on top of how much a new app is costing — and if so, how much it’s exceeding the initial budget.
It’s important to recognise that there can be a significant cost to acquiring app users. In order to successfully measure the CPA of a software project, you can add up the total costs for that campaign and divide it by the successful number of conversions or acquisitions. Like any effective KPI, CPA helps you determine whether your strategy needs to be revised going forward.
7. Average Revenue Per User (ARPU)
The Average Revenue Per User (ARPU) KPI involves calculating the current lifetime value (LTV) your app or software product has achieved since launch. You can do this by simply dividing the total revenue of your app by the number of users you have had over time. Calculating the ARPU of your app is a great way to continuously track annual growth progress as well as compare the success of your app against competitors.
Your Software Development Journey with GearedApp
Choosing the right software quality and mobile app performance KPIs for your next project is an essential part of success. Here at GearedApp, we use a unique approach to help companies measure the most important KPIs that ensure a successful launch with a powerful app.
Our friendly team of pros will be with you every step of the way, from our initial sit-down chat all the way to launching the finished product. Discover our process to find out more about how GearedApp works.
Reach out to our team today to find out how we can help turn your awesome ideas into a digital reality.