How to create a KPI tree for your app
Posted: Sun Jan 19, 2025 5:16 am
From here, we will explain how to create a KPI tree for your app.
To create a KPI tree for your app, first break down revenue into two components: the number of active users (xAU) and average revenue per user (ARPU) .
The number of active users includes multiple numbers singapore email address such as DAU (daily active users) and MAU (monthly active users).
Then break each one down into smaller pieces.
For example, active users are divided into new customers and repeat customers, and customer costs are divided into advertising costs and number of views.
Now let's take a look at how to break each one down.
What constitutes an active user (xAU)?
Active users are divided into new customers and repeat customers (retention rate) .
Furthermore, new customers can be broken down by source of inflow. Specifically, they can be divided into " inflow from app stores," "inflow from advertisements," and "inflow from word of mouth . "
Components of average revenue per user (ARPU)
The way average revenue per user (ARPU) is broken down varies depending on the business model of the following three apps.
Billing model
Display advertising model
Click-based and performance-based advertising model
Now let's take a closer look at each business model.
Billing model
For paid apps, the factors are broken down into average purchase price per user (ARPPU) and pay-per-user rate (PUR) .
By multiplying these together, you can calculate the average revenue per user (ARPU).
Furthermore, the average purchase price is divided into three elements: " unit price of product," "number of items purchased," and "purchase frequency . "
Display advertising model
For apps with a display advertising model, ARPU is determined by engagement and advertising cost per million (CPM) .
Advertising cost is sometimes called cost per impression.
Engagement refers to the amount of time each user spends using the app and the number of views.
It is broken down into " page views (PV)," "time spent," and "frequency of use . "
Which user actions are counted as engagement varies depending on the ad , so be sure to check in advance.
To create a KPI tree for your app, first break down revenue into two components: the number of active users (xAU) and average revenue per user (ARPU) .
The number of active users includes multiple numbers singapore email address such as DAU (daily active users) and MAU (monthly active users).
Then break each one down into smaller pieces.
For example, active users are divided into new customers and repeat customers, and customer costs are divided into advertising costs and number of views.
Now let's take a look at how to break each one down.
What constitutes an active user (xAU)?
Active users are divided into new customers and repeat customers (retention rate) .
Furthermore, new customers can be broken down by source of inflow. Specifically, they can be divided into " inflow from app stores," "inflow from advertisements," and "inflow from word of mouth . "
Components of average revenue per user (ARPU)
The way average revenue per user (ARPU) is broken down varies depending on the business model of the following three apps.
Billing model
Display advertising model
Click-based and performance-based advertising model
Now let's take a closer look at each business model.
Billing model
For paid apps, the factors are broken down into average purchase price per user (ARPPU) and pay-per-user rate (PUR) .
By multiplying these together, you can calculate the average revenue per user (ARPU).
Furthermore, the average purchase price is divided into three elements: " unit price of product," "number of items purchased," and "purchase frequency . "
Display advertising model
For apps with a display advertising model, ARPU is determined by engagement and advertising cost per million (CPM) .
Advertising cost is sometimes called cost per impression.
Engagement refers to the amount of time each user spends using the app and the number of views.
It is broken down into " page views (PV)," "time spent," and "frequency of use . "
Which user actions are counted as engagement varies depending on the ad , so be sure to check in advance.