Steps Followed by Developers to Measure the ROI of Mobile Apps

Steps Followed by Developers to Measure ROI of Mobile Apps

November 18, 2016 by Appdexa

There are many organizations that have started mobilizing their work applications or  started to seriously consider taking such a step. The reluctance to go mobile usually arises from the fact that they are not sure about that one factor of Return On Investment, ROI of mobile apps. For achieving of financial success for the mobile apps, in the current complex marketplace is indeed not an easy task. Analytics plays an important part in this effort. Without a comprehensive marketing plan at the initial stages of the app, there is tendency of the mobile developers in falling back on analytic tools, during the design and development stages. The comprehensive strategy will incorporate the analytic tools in each step of the development process. The mobile apps developed by the enterprises are costly and it is absolutely imperative that they provide a solid ROI.

Steps for the Determination of ROI of Mobile Apps:

Measurement Plan is Created

This is the most crucial step as the steps that follows are not possible without this step. The measurement of the ROI must be started at the beginning of the process, before the designing of the screens and starting to write the code. The mobile developers must also focus on the business objectives and key metrics that will be applicable, throughout the app development process. Optimization phase also plays an equally important role in looking back and finding out the app performance against it and that will bring about the improvements in the apps. Successful checkouts is another metric for an e-commerce based app, so as to generate revenue from that application.

Calculation Of Customer Lifetime Value

Customer Lifetime Value(CLV) is the revenue that is about to be generated with the relation between the customer and the application. Businesses with web customers can take that lifetime value and take this as a target for the application. The lifetime value may also get expanded by redefining the value and then forecasting the impact of the app on it. The developer will endeavour to calculate the lifetime value of the app, considering the revenue for a customer, in collaboration with business units. The idea is to provide an addictive experience with the app as it is a personalized experience.  


The developers need to understand that the apps need to be curated. For this, the initial cost of the building the app comes first and then need to understand the daily operational costs incurred. Newer app users are obtained by using the marketing costs varying due to the advertising and marketing channels. The attribution tools will be used for the finding out where the user discovered the app.

Value of the Users

The value of the users varies from each other. The customers obtained from the web and then reached the apps, are much more valuable than those obtained from Facebook advertisements. The user who is taking out the time to download the app from the website is much more committed to the company. However this does not mean that these are the most engaged users. So, the mobile developers will try to increase customer engagement further, during the optimization phase, by push notifications, new contents and personalized contents.

Actionable Metrics

The actionable metrics are for tracking the user experience in mobile apps. The metrics are set during the initial phase of the app development. What is needed is an action from their side. A/B testing may be carried out during the mobile application development as done in web development. The determination of ROI is dependent on planning and identification of actionable metrics, measurable and relevant. It is always better for the businesses to launching their apps with means of measuring their success, even if it involves some amount of guesswork.


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