The 19 Metrics Every

MOBILE GAME
NEEDS TO TRACK

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Table​ ​of​ ​Contents   

 

Measure​ ​your​ ​game’s​ ​success​ ​by​ ​unifying​ ​your​ ​data ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​2 

The​ ​3​ ​Main​ ​Types​ ​of​ ​Metrics​ ​That​ ​You​ ​Need​ ​to​ ​Track ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​4 
Key​ ​User​ ​Acquisition​ ​Metrics 4 
Key​ ​User​ ​Retention​ ​Metrics 7 
Key​ ​Monetization​ ​Metrics 12 

The​ ​Right​ ​Way​ ​of​ ​Measuring​ ​Success 1​4 

 
 
   

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While​ ​there​ ​are​ ​some​ ​pretty​ ​intuitive​ ​ways​ ​of​ ​tracking​ ​your​ ​game’s​ ​success, 
it​ ​can​ ​be​ ​tough​ ​to​ ​convert​ ​those​ ​insights​ ​into​ ​growth​ ​and​ ​retention 
strategies.  
 
Given​ ​all​ ​of​ ​the​ ​metrics​ ​that​ ​are​ ​touted​ ​the​ ​next​ ​best​ ​thing​ ​at​ ​helping​ ​you 
improve​ ​your​ ​marketing​ ​or​ ​your​ ​monetization,​ ​it​ ​can​ ​be​ ​pretty​ ​easy​ ​to​ ​get 
lost​ ​in​ ​all​ ​of​ ​the​ ​noise.  
 
Fortunately,​ ​we’re​ ​here​ ​to​ ​help:​ ​the​ ​following​ ​post​ ​captures​ ​the​ ​three​ ​main 
kinds​ ​of​ ​metrics​ ​that​ ​mobile​ ​game​ ​product​ ​managers​ ​should​ ​prioritize​ ​in 
order​ ​to​ ​maximize​ ​their​ ​game’s​ ​success.  
 
If​ ​you​ ​segment​ ​these​ ​measures​ ​into​ ​three​ ​main​ ​categories​ ​--​ ​acquisition, 
retention,​ ​and​ ​monetization​ ​--​ ​you​ ​will​ ​see​ ​a​ ​clear​ ​roadmap​ ​to​ ​improving 
your​ ​game​ ​company’s​ ​value.  
 
But​ ​first,​ ​let’s​ ​define​ ​what​ ​we​ ​mean​ ​when​ ​we​ ​say​ ​“success.” 

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Measure​ ​your​ ​game’s​ ​success  

by​ ​unifying​ ​your​ ​data  
 

The​ ​meaning​ ​of​ ​‘success’​ ​can​ ​be​ ​different​ ​from​ ​one​ ​mobile​ ​game​ ​to​ ​another,​ ​but​ ​three​ ​categories 
stand​ ​out​ ​as​ ​areas​ ​for​ ​optimization​ ​across​ ​the​ ​board:  
 
● User​ ​acquisition  
● User​ ​retention  
● App​ ​monetization 
 
Your​ ​ability​ ​to​ ​visualize​ ​the​ ​relationship​ ​between​ ​your​ ​acquisition,​ ​retention,​ ​and​ ​monetization 
metrics​ ​can​ ​provide​ ​fantastic​ ​insights​ ​into​ ​your​ ​game’s​ ​growth​ ​and​ ​profitability​ ​strategy.  

 
 
Typically,​ ​data​ ​unification​ ​is​ ​done​ ​through​ ​a​ ​data​ ​warehouse​,​ ​which​ ​is​ ​a​ ​large​ ​storage​ ​solution 
that​ ​houses​ ​all​ ​of​ ​the​ ​data​ ​from​ ​a​ ​wide​ ​range​ ​of​ ​sources.  
 
 
 

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So,​ ​why​ ​do​ ​I​ ​need​ ​a​ ​data​ ​warehouse?​ ​Well,​ ​if​ ​all​ ​of​ ​your​ ​data​ ​is​ ​unified​ ​in​ ​one​ ​place,​ ​you​ ​can​ ​get​ ​a 
more​ ​accurate​ ​picture​ ​of​ ​how​ ​each​ ​of​ ​these​ ​key​ ​areas​ ​--​ ​acquisition,​ ​retention,​ ​and​ ​monetization 
influence​ ​one​ ​another. 
 
We’ve​ ​addressed​ ​how​ ​to​ ​go​ ​about​ ​building​ ​a​ ​data​ ​warehouse​ o
​ n​ ​our​ ​blog​ ​in​ ​the​ ​past​,​ ​but​ ​the​ ​gist 
of​ ​it​ ​is​ ​simple:​ ​having​ ​a​ ​single​ ​storage​ ​solution​ ​for​ ​all​ ​of​ ​your​ ​metrics​ ​increases​ ​their​ ​value​ ​by 
making​ ​them​ ​easy​ ​to​ ​compare​ ​and​ ​correlate​ ​with​ ​one​ ​another.  

 
Here’s​ ​a​ ​real-world​ ​example:​ ​if​ ​you​ ​unify​ ​your​ ​metrics,​ ​you​ ​will​ ​be​ ​able​ ​to​ ​measure​ ​which 
marketing​ ​campaigns​ ​have​ ​been​ ​the​ ​most​ ​successful​ ​for​ ​your​ ​mobile​ ​game​ ​--​ ​which​ ​of​ ​your 
campaigns,​ ​whether​ ​it's​ ​Facebook​ ​Ads​ ​or​ ​Google​ ​AdWords,​ ​produces​ ​the​ ​most​ ​valuable 
customer?​ ​Which​ ​one​ ​is​ ​more​ ​profitable?​ ​Which​ ​one​ ​is​ ​more​ ​likely​ ​to​ ​churn?  
 
If​ ​you​ ​have​ ​a​ ​data​ ​warehouse,​ ​these​ ​kinds​ ​of​ ​questions​ ​are​ ​a​ ​breeze​ ​to​ ​answer. 
 
Data​ ​unification​ ​is​ ​a​ ​lot​ ​more​ ​useful​ ​than​ ​“connecting​ ​the​ ​dots”​ ​through​ ​the​ ​different​ ​dashboards 
of​ ​your​ ​metrics​ ​services.​ ​By​ ​putting​ ​your​ ​insights​ ​side-by-side,​ ​you’re​ ​taking​ ​advantage​ ​of​ ​your 
metrics​ ​in​ ​ways​ ​that​ ​you​ ​may​ ​have​ ​not​ ​thought​ ​were​ ​possible.  
 
Check​ ​out​​ ​CoolaData​’s​​ ​data​ ​unification​ ​service​​ ​if​ ​you’re​ ​interested​ ​in​ ​learning​ ​more.  
 

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The​ ​3​ ​Main​ ​Types​ ​of​ ​Metrics​ ​That​ ​You 

Need​ ​to​ ​Track 

 
 
Each​ ​of​ ​the​ ​metrics​ ​listed​ ​below​ ​has​ ​been​ ​categorized​ ​according​ ​to​ ​the​ ​three​ ​main​ ​categories​ ​of 
success​ ​for​ ​mobile​ ​games.  
 
Let’s​ ​work​ ​step-by-step​ ​through​ ​the​ ​user​ ​lifecycle​ ​and​ ​see​ ​which​ ​metrics​ ​can​ ​help​ ​you​ ​optimize 
your​ ​growth​ ​and​ ​profitability​ ​strategy.  

Key​ ​User​ ​Acquisition​ ​Metrics  

 
1.​ ​New​ ​users  
 
Knowing​ ​how​ ​many​ ​new​ ​users​ ​start​ ​playing​ ​your​ ​game​ ​in​ ​a​ ​particular​ ​month​ ​can​ ​really​ ​help 
visualize​ ​the​ ​growth​ ​of​ ​your​ ​application.  

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If​ ​you​ ​keep​ ​your​ ​eye​ ​on​ ​the​ ​growth​ ​of​ ​your​ ​app,​ ​you​ ​will​ ​be​ ​able​ ​to​ ​quantify​ ​which​ ​marketing 
channel​ ​works​ ​best:​ ​whether​ ​that’s​ ​SEO,​ ​paid​ ​ads,​ ​social​ ​media​ ​communities​ ​or​ ​other​ ​marketing 
avenues. 
 

 
Growth​ ​comes​ ​from​ ​both​ ​new​ ​users​ ​and​ ​channel-specific​ ​metrics  
 
 
 
2.​ ​Daily​ ​active​ ​users​ ​(DAU) 
 
This​ ​is​ ​a​ ​great​ ​day-to-day​ ​metric​ ​to​ ​keep​ ​an​ ​eye​ ​on:​ ​daily​ ​active​ ​users​ (​ DAU)​​ ​measures​ ​the 
number​ ​of​ ​unique​ ​users​ ​that​ ​participate​ ​in​ ​at​ ​least​ ​one​ ​session​ ​of​ ​your​ ​game. 
 
While​ ​this​ ​metric​ ​doesn’t​ ​define​ ​your​ ​game’s​ ​performance​,​ ​it​ ​is​ ​a​ ​great​ ​way​ ​to​ ​understand​ ​if​ ​the 
app​ ​has​ ​become​ ​a​ ​part​ ​of​ ​users’​ ​day-to-day​ ​life.  
 
Specifically,​ ​DAU​ ​is​ ​important​ ​for​ ​games​ ​that​ ​are​ ​looking​ ​for​ ​a​ ​way​ ​to​ ​go​ ​viral.​ ​Keeping​ ​track​ ​of 
DAU​ ​means​ ​always​ ​keeping​ ​your​ ​hand​ ​on​ ​the​ ​pulse​ ​of​ ​your​ ​userbase;​ ​DAU​ ​can​ ​let​ ​you​ ​know 
what​ ​engagement​ ​and​ ​monetization​ ​strategies​ ​are​ ​or​ ​aren’t​ ​working​ ​in​ ​the​ ​matter​ ​of​ ​days.  
 
 
 
 
 
3.​ ​K-factor 

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Another​ ​great​ ​metric​ ​that​ ​keeps​ ​track​ ​of​ ​the​ ​development​ ​of​ ​your​ ​customer​ ​referral​ ​strategy​ ​is 
called​ ​the​ ​k-factor.​ ​Your​ ​game’s​ ​k-factor​ ​is​ ​the​ ​amount​ ​of​ ​invites​ ​sent​ ​by​ ​each​ ​customer​ ​of​ ​your 
application​ ​multiplied​ ​by​ ​the​ ​conversion​ ​of​ ​each​ ​invite. 
 
The​​ ​k-factor​​ ​can​ ​be​ ​calculated​ ​as:  
 

 
 
The​ ​k-factor​ ​neatly​ ​summarizes​ ​the​ ​effectiveness​ ​of​ ​your​ ​referral​ ​growth​ ​strategy,​ ​making​ ​it​ ​a 
quantifiable​ ​metric​ ​that​ ​can​ ​then​ ​be​ ​compared​ ​at​ ​different​ ​times​ ​in​ ​your​ ​game’s​ ​development​ ​in 
order​ ​to​ ​measure​ ​the​ ​effectiveness​ ​of​ ​your​ ​approach.  
 
4.​ ​Number​ ​of​ ​invites​ ​sent​ ​/​ ​DAU:  
 
This​ ​metric​ ​is​ ​an​ ​offshoot​ ​of​ ​the​ ​k-factor​ ​metric,​ ​outlined​ ​above.​ ​Instead​ ​of​ ​measuring​ ​your​ ​referral 
conversion​ ​rate,​ ​however,​ ​this​ ​metric​ ​gives​ ​you​ ​a​ ​more​ ​comprehensive​ ​picture​ ​of​ ​how​ ​well​ ​your 
referral​ ​program​ ​is​ ​retaining​ ​the​ ​users​ ​that​ ​have​ ​downloaded​ ​and​ ​played​ ​your​ ​app.  
 
5.​ ​Percent​ ​of​ ​users​ ​acquired​ ​virally  
 
If​ ​you​ ​segment​ ​your​ ​total​ ​number​ ​of​ ​users​ ​by​ ​the​ ​amount​ ​of​ ​users​ ​you’ve​ ​acquired​ ​virally,​ ​you​ ​can 
pinpoint​ ​which​ ​marketing​ ​strategy​ ​works​ ​best​ ​for​ ​increasing​ ​your​ ​game’s​ ​chances​ ​of​ ​going​ ​viral.   
 
After​ ​you​ ​are​ ​tracking​ ​your​ ​virality​ ​metrics,​ ​you’ll​ ​be​ ​able​ ​to​ ​segment​ ​the​ ​information​ ​even​ ​further: 
by​ ​source,​ ​by​ ​geographical​ ​location,​ ​and​ ​by​ ​time​ ​of​ ​day​ ​or​ ​year,​ ​among​ ​others.  
 
 
 
 

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Overall,​ ​your​ ​key​ ​acquisition​ ​metrics​ ​are​ ​some​ ​of​ ​the​ ​best​ ​ways​ ​of​ ​being​ ​on​ ​top​ ​of​ ​user 
acquisition.​ ​With​ ​the​ ​power​ ​of​ ​data​ ​unification,​ ​these​ ​metrics​ ​can​ ​show​ ​you​ ​really​ ​effective​ ​details 
about​ ​the​ ​features​ ​of​ ​your​ ​game​ ​that​ ​could​ ​make​ ​it​ ​go​ ​viral.  

Key​ ​User​ ​Retention​ ​Metrics 

 
1.​ ​Retention  
 
The​ ​first​ ​metric​ ​to​ ​look​ ​at​ ​when​ ​evaluating​ ​your​ ​retention​ ​strategy,​ ​is,​ ​well,​ ​your​ ​retention​ ​score.  
 
To​ ​calculate​ ​the​ ​retention​ ​rate​ ​of​ ​your​ ​game,​ ​separate​ ​your​ ​users​ ​into​ ​smart​ ​cohorts​ ​based​ ​on 
the​ ​day​ ​of​ ​acquisition. 
 
Then,​ ​monitor​ ​how​ ​they​ ​are​ ​interacting​ ​with​ ​the​ ​game​ ​on​ ​day​ ​1,​ ​3,​ ​7​ ​and​ ​30​ ​to​ ​understand​ ​if 
you’ve​ ​been​ ​able​ ​to​ ​hook​ ​their​ ​interest​ ​effectively,​ ​or​ ​if​ ​you’re​ ​losing​ ​their​ ​attention​ ​gradually.  
 
Seeing​ ​how​ ​your​ ​retention​ ​scores​ ​interact​ ​with​ ​other​ ​parts​ ​of​ ​your​ ​strategy​ ​--​ ​such​ ​as 
monetization​ ​or​ ​acquisition​ ​--​ ​can​ ​really​ ​shed​ ​light​ ​on​ ​what​ ​makes​ ​your​ ​users​ ​tick.​ ​All​ ​of​ ​the​ ​other 
metrics​ ​below​ ​will​ ​help​ ​you​ ​optimize​ ​your​ ​retention​ ​score​ ​by​ ​helping​ ​to​ ​get​ ​your​ ​users​ ​more 
invested​ ​in​ ​your​ ​game.  
 
2.​ ​Engagement​ ​score  
 

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The​ ​user​ ​engagement​ ​score​ ​is​ ​a​ ​single​ ​metric​ ​used​ ​to​ ​measure​ ​how​ ​engaged​ ​your​ ​players​ ​when 
they’re​ ​playing​ ​your​ ​game.​ ​It​ ​is​ ​represented​ ​by​ ​a​ ​number​ ​based​ ​on​ ​the​ ​user​ ​activity​ ​and​ ​the 
number​ ​of​ ​sessions​ ​a​ ​user​ ​has​ ​on​ ​a​ ​day​ ​to​ ​day​ ​basis.  
 
Segmenting​ ​and​ ​analyzing​ ​user​ ​behaviour​ ​using​ ​the​ ​engagement​ ​score​ ​as​ ​an​ ​identifying​ ​feature 
of​ ​your​ ​cohort​ ​is​ ​the​ ​best​ ​way​ ​to​ ​find​ ​out​ ​how​ ​to​ ​convert​ ​your​ ​un-engaged​ ​user​ ​into​ ​engaged, 
well-paying​ ​customers.  
 

 
 
 
3.​ ​Number​ ​of​ ​sessions​ ​per​ ​user 
 

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A​ ​good​ ​place​ ​to​ ​start​ ​with​ ​retention​ ​metrics​ ​is​ ​number​ ​of​ ​sessions​ ​that​ ​a​ ​user​ ​goes​ ​through​ ​per 
day.  
 
If​ ​you​ ​know​ ​how​ ​often​ ​your​ ​users​ ​are​ ​logging​ ​into​ ​your​ ​app​ ​or​ ​using​ ​it​ ​on​ ​a​ ​day​ ​to​ ​day​ ​basis,​ ​you 
can​ ​be​ ​extra​ ​sure​ ​that​ ​you​ ​have​ ​the​ ​right​ ​engagement​ ​tools​ ​in​ ​place​ ​to​ ​make​ ​sure​ ​these​ ​user 
keeps​ ​coming​ ​back​ ​for​ ​more.  
 
4.​ ​Drop​ ​off​ ​rates  
 
Now,​ ​if​ ​some​ ​of​ ​these​ ​users​ ​aren’t​ ​being​ ​engaged,​ ​that​ ​means​ ​they’re​ ​dropping​ ​off.  
 
If​ ​you​ ​want​ ​to​ ​keep​ ​users​ ​engaged​ ​in​ ​your​ ​game,​ ​you​ ​need​ ​to​ ​ensure​ ​they​ ​know​ ​how​ ​to​ ​get 
through​ ​all​ ​of​ ​the​ ​steps​ ​of​ ​your​ ​game:​ ​the​ ​tutorial,​ ​the​ ​first​ ​level,​ ​and​ ​so​ ​on.  
 
Sometimes,​ ​you​ ​need​ ​to​ ​acknowledge​ ​that​ ​users​ ​might​ ​get​ ​stuck​ ​and​ ​drop​ ​off​​ ​from​ ​playing​ ​your 
game.​ ​The​ ​drop​ ​offs​ ​could​ ​be​ ​due​ ​to​ ​the​ ​many​ ​reasons:​ ​the​ ​game​ ​might​ ​be​ ​too​ ​complicated,​ ​or 
the​ ​player​ ​might​ ​have​ ​lost​ ​interest.  
 
Finding​ ​these​ ​weak​ ​points​ ​is​ ​crucial:​ ​they​ ​can​ ​help​ ​revitalize​ ​your​ ​game​ ​and​ ​make​ ​your​ ​business 
model​ ​a​ ​lot​ ​more​ ​sustainable.  
 
5.​ ​Session​ ​duration  
 
Session​ ​duration​​ ​can​ ​help​ ​you​ ​understand​ ​how​ ​hooked​ ​your​ ​players​ ​to​ ​your​ ​game.​ ​If​ ​you​ ​see 
why​ ​users​ ​are​ ​increasingly​ ​coming​ ​back,​ ​you​ ​can​ ​find​ ​out​ ​what​ ​elements​ ​are​ ​keeping​ ​people 
hooked​ ​and​ ​why.​ ​a  
 
​ ​Compare​ ​the​ ​behavior​ ​of​ ​users​ ​with​ ​high​ ​average​ ​session​ ​duration​ ​with​ ​that​ ​of​ ​churned​ ​users, 
and​ ​reap​ ​the​ ​reward​ ​of​ ​knowing​ ​how​ ​you​ ​can​ ​turn​ ​the​ ​latter​ ​into​ ​the​ ​former.   
 
6.​ ​User​ ​walk  

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It​ ​is​ ​important​ ​to​ ​measure​ ​how​ ​your​ ​active​ ​users​ ​change​ ​from​ ​week​ ​to​ ​week​ ​--​ ​to​ ​do​ ​that,​ ​you’ll 
need​ ​to​ ​know​ ​your​ ​user​ ​walk.  
 

 
 
User​ ​walk​ ​measures​ ​several​ ​things:​ ​how​ ​many​ ​new​ ​installs​ ​your​ ​application​ ​gets,​ ​how​ ​many​ ​of 
those​ ​installs​ ​are​ ​reactivated​ ​users,​ ​and​ ​how​ ​many​ ​of​ ​these​ ​new​ ​installs​ ​are​ ​gradually​ ​moving 
towards​ ​a​ ​churn,​ ​all​ ​organized​ ​by​ ​user​ ​cohort.  
 
Simply​ ​put,​​ ​user​ ​walk​​ ​provides​ ​an​ ​in-depth​ ​view​ ​of​ ​the​ ​lifecycle​ ​stages​ ​of​ ​your​ ​customers.​ ​If​ ​you 
divide​ ​these​ ​user​ ​walks​ ​by​ ​profitability,​ ​you​ ​can​ ​find​ ​your​ ​most​ ​profitable​ ​user​ ​lifecycle​ ​and​ ​try 
and​ ​funnel​ ​the​ ​rest​ ​of​ ​your​ ​user​ ​base​ ​through​ ​the​ ​same​ ​steps.  
 
7.​ ​Daily​ ​active​ ​users​ ​/​ ​Monthly​ ​active​ ​users​ ​(DAU/MAU)​ ​ratio  
 
The​ ​ratio​ ​of​ ​your​ ​daily​ ​active​ ​users​ ​to​ ​monthly​ ​active​ ​users​ ​is​ ​an​ ​indicator​ ​of​ ​the​ ​stickiness​ ​of​ ​your 
game​ ​in​ ​a​ ​specific​ ​market.​ ​This​ ​number​ ​is​ ​a​ ​reflection​ ​of​ ​how​ ​frequently​ ​users​ ​are​ ​logging​ ​into 
your​ ​app,​ ​making​ ​it​ ​easier​ ​to​ ​identify​ ​where​ ​you​ ​lack​ ​engagement​ ​and​ ​retention​ ​strategies.  
 

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8.​ ​Source,​ ​sink​ ​and​ ​flow​ ​metrics 
 
These​ ​three​ ​metrics​ ​only​ ​make​ ​sense​ ​if​ ​your​ ​game​ ​has​ ​a​ ​built-in​ ​currency​ ​system.  
 
The​ ​source​ ​metric​​ ​indicates​ ​the​ ​amount​ ​of​ ​currency​ ​a​ ​user​ ​has​ ​earned​ ​as​ ​they​ ​progress​ ​through 
the​ ​game. 
  
The​ ​sink​ ​metric​​ ​indicates​ ​the​ ​stages​ ​at​ ​which​ ​a​ ​user​ ​needs​ ​to​ ​spend​ ​the​ ​currency​ ​to​ ​move 
forward​ ​or​ ​compete​ ​with​ ​other​ ​players.  
 
Finally​,​ ​the​​ ​flow​​ ​metric​ ​is​ ​a​ ​measure​ ​of​ ​both​ ​sources​ ​and​ ​sinks:​ ​it​ ​is​ ​the​ ​total​ ​balance​ ​of​ ​currency 
that​ ​a​ ​player​ ​has​ ​earned​ ​and​ ​spent​ ​over​ ​a​ ​period​ ​of​ ​time.​ ​This​ ​metric​ ​allows​ ​you​ ​to​ ​see​ ​how​ ​you 
can​ ​nudge​ ​a​ ​player​ ​towards​ ​in-app​ ​conversions​ ​or​ ​purchases.  
 
If​ ​you​ ​know​ ​how​ ​your​ ​users​ ​spend​ ​their​ ​in-game​ ​currency,​ ​you​ ​will​ ​be​ ​able​ ​to​ ​richly​ ​understand 
user​ ​engagement​ ​and​ ​the​ ​thought​ ​process​ ​of​ ​the​ ​people​ ​playing​ ​your​ ​game.  
 
9.​ ​Start,​ ​Fail​ ​and​ ​Complete​ ​Metrics 
 
The​ ​start​ ​metric​​ ​is​ ​a​ ​measure​ ​of​ ​the​ ​number​ ​of​ ​times,​ ​on​ ​average,​ ​one​ ​of​ ​your​ ​players​ ​has​ ​started 
a​ ​new​ ​level.  
 
On​ ​the​ ​other​ ​hand,​ ​the​ ​fail​ ​metric​​ ​is​ ​the​ ​measure​ ​of​ ​how​ ​many​ ​times​ ​a​ ​user​ ​has​ ​started​ ​a​ ​level 
but​ ​wasn’t​ ​able​ ​to​ ​complete​ ​it. 
 
The​ ​complete​ ​metric​​ ​is​ ​the​ ​count​ ​of​ ​how​ ​many​ ​times​ ​the​ ​user​ ​has​ ​been​ ​successfully​ ​able​ ​to 
complete​ ​a​ ​level.  
 
The​ ​three​ ​metrics​ ​are​ ​important​ ​to​ ​analyze​ ​the​ l​ earning​ ​curve​ ​of​ ​your​ ​game​.​ ​By​ ​knowing​ ​the 
difficulty​ ​of​ ​your​ ​game​ ​in​ ​practice,​ ​you​ ​can​ ​effectively​ ​adjust​ ​your​ ​user​ ​engagement​ ​and​ ​increase 
your​ ​retention. 

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Key​ ​Monetization​ ​Metric 

 
1.​ ​Customer​ ​Lifetime​ ​Value​ ​(LTV)  
 
The​ ​user​ ​lifetime​ ​value​​ ​refers​ ​to​ ​the​ ​amount​ ​of​ ​net​ ​profit​ ​you’re​ ​generating​ ​from​ ​a​ ​user​ ​before 
they​ ​churn​ ​from​ ​the​ ​app​ ​or​ ​stop​ ​converting​ ​on​ ​in-app​ ​purchases.  
 
Similar​ ​to​ ​the​ ​acquisition​ ​metrics​ ​and​ ​the​ ​retention​ ​metrics​ ​outlined​ ​above,​ ​this​ ​measure​ ​is​ ​the 
‘pulse’​ ​of​ ​your​ ​strategy​ ​--​ ​if​ ​it’s​ ​going​ ​up,​ ​that​ ​means​ ​your​ ​tactics​ ​are​ ​working! 
 
In​ ​order​ ​to​ ​measure​ ​your​ ​customer's’​ ​LTV,​ ​you​ ​need​ ​to​ ​compare​ ​the​ ​average​ ​gross​ ​profit​ ​that​ ​you 
make​ ​off​ ​of​ ​each​ ​user,​ ​then​ ​multiply​ ​it​ ​by​ ​the​ ​your​ ​profit​ ​margin,​ ​and​ ​then​ ​divide​ ​the​ ​whole​ ​thing 
by​ ​your​ ​churn​ ​rate.  
 

 
 
2.​ ​User​ ​acquisition​ ​cost​ ​(UAC)   
 
Ideally,​ ​your​ ​goal​ ​is​ ​to​ ​make​ ​sure​ ​that​ ​your​ ​LTV​ ​is​ ​three​ ​times​ ​higher​ ​than​ ​your​ ​user​ ​acquisition 
cost​ ​(UAC).  
 
User​ ​acquisition​​ ​is​ ​the​ ​amount​ ​of​ ​marketing​ ​acquisition​ ​costs​ ​that​ ​you​ ​will​ ​need​ ​to​ ​spend​ ​in​ ​order 
to​ ​acquire​ ​a​ ​single​ ​user.​ ​This​ ​metric​ ​is​ ​calculated​ ​by​ ​dividing​ ​all​ ​the​ ​costs​ ​spent​ ​on​ ​acquiring 
customers​ ​by​ ​the​ ​number​ ​of​ ​customers​ ​actually​ ​you​ ​have​ ​acquired​ ​during​ ​this​ ​period.  
 
 

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This​ ​metric​ ​is​ ​a​ ​key​ ​indicator​ ​of​ ​resource​ ​optimization​ ​and​ ​needs​ ​to​ ​be​ ​tracked​ ​closely​ ​to 
maximise​ ​ROIs​ ​on​ ​acquisition​ ​strategies.  
 
3.​ ​Average​ ​revenue​ ​per​ ​daily​ ​active​ ​user​ ​(ARPDAU)  
 
Unlike​ ​LTV,​ ​this​ ​metric​ ​is​ ​a​ ​lot​ ​more​ ​flexible:​ ​it​ ​allows​ ​you​ ​to​ ​understand​ ​how​ ​the​ ​game​ ​is 
performing​ ​on​ ​a​ ​day​ ​to​ ​day​ ​basis. 
 
If​ ​you​ ​track​ ​this​ ​before​ ​and​ ​during​ ​user​ ​acquisition​ ​campaigns,​ ​you​ ​will​ ​able​ ​to​ ​carefully​ ​ ​segment 
your​ ​users​ ​by​ ​acquisition​ ​source​ ​and​ ​find​ ​out​ ​which​ ​platform​ ​work​ ​best​ ​for​ ​their​ ​app​.    
 
4.​ ​Average​ ​revenue​ ​per​ ​paying​ ​user​ ​(ARPPU)  
 
This​ ​metric​ ​measures​ ​the​ ​subset​ ​of​ ​users​ ​who​ ​have​ ​successfully​ ​converted​ ​on​ ​an​ i​ n-game 
purchase​.​ ​This​ ​may​ ​vary​ ​from​ ​app​ ​to​ ​app,​ ​based​ ​on​ ​the​ ​genre​ ​of​ ​the​ ​game.  
 
Most​ ​hardcore​ ​games​ ​tend​ ​to​ ​see​ ​higher​ ​ARPPU,​ ​at​ ​least​ ​compared​ ​to​ ​more​ ​casual​ ​games​ ​that 
appeal​ ​to​ ​a​ ​broader​ ​audience.   
 
5.​ ​Average​ ​transaction​ ​value  
 
This​ ​metric​ ​is​ ​an​ ​insight​ ​into​ ​the​ ​average​ ​amount​ ​a​ ​user​ ​is​ ​willing​ ​to​ ​pay​ ​for​ ​an​ ​in-game​ ​upgrade 
or​ ​currency.  
 
If​ ​you​ ​measure​ ​average​ ​transaction​ ​value​​ ​on​ ​a​ ​weekly​ ​or​ ​biweekly​ ​period​ ​from​ ​a​ ​user’s​ ​point​ ​of 
acquisition,​ ​you’ll​ ​be​ ​able​ ​to​ ​quickly​ ​make​ ​adjustments​ ​to​ ​your​ ​pricing​ ​model​ ​and​ ​measure​ ​the 
results​ ​that​ ​that​ ​has​ ​on​ ​LTV,​ ​retention,​ ​and​ ​on​ ​acquisition. 
 
 

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The​ ​right​ ​way​ ​of​ ​measuring​ ​success  

If​ ​you​ ​want​ ​to​ ​make​ ​sure​ ​that​ ​you’re​ ​getting​ ​the​ ​most​ ​out​ ​of​ ​your 
metrics,​ ​you​ ​need​ ​to​ ​unify​ ​your​ ​data​ ​from​ ​your​ ​acquisition, 
retention,​ ​and​ ​monetization​ ​channels.  
 
By​ ​combining​ ​your​ ​acquisition​ ​and​ ​retention​ ​data,​ ​you​ ​can​ ​gain​ ​powerful​ ​insights​ ​into​ ​how​ ​which 
markets​ ​bring​ ​you​ ​the​ ​most​ ​stable​ ​and​ ​satisfied​ ​customers.  
 
By​ ​combining​ ​retention​ ​and​ ​monetization,​ ​you’re​ ​able​ ​to​ ​quickly​ ​see​ ​what​ ​kind​ ​of​ ​user​ ​behaviour 
translates​ ​into​ ​your​ ​most​ ​profitable​ ​users.  
 
Doing​ ​it​ ​the​ ​old​ ​way​ ​would​ ​mean​ ​individually​ ​scraping​ ​data​ ​from​ ​each​ ​platform​ ​or​ ​dashboard,​ ​and 
then​ ​unifying​ ​those​ ​insights​ ​in​ ​another​ ​place.​ ​And​ ​the​ ​kinds​ ​of​ ​insightful,​ ​comparative​ ​insights 
outlined​ ​above​ ​are​ ​simply​ ​not​ ​possible​ ​doing​ ​it​ ​the​ ​old​ ​way.  
 
A​ ​data​ ​warehouse​ ​could​ ​help​ ​unify​ ​and​ ​compare​ ​the​ ​data​ ​from​ ​your​ ​social​ ​media,​ ​email,​ ​ads,​ ​app 
store,​ ​in-app​ ​solutions​ ​and​ ​more​ ​in​ ​order​ ​to​ ​get​ ​the​ ​bigger​ ​picture​ ​of​ ​your​ ​success​ ​strategy.​ ​Smart 
tools​ ​like​ ​Cooladata,​ ​however,​ ​can​ ​do​ ​that​ ​all​ ​for​ ​you​ ​on​ ​a​ ​unified​ ​dashboard​.  
 
Since​ ​a​ ​product​ ​manager’s​ ​job​ ​isn’t​ ​going​ ​get​ ​any​ ​easier,​ ​how​ ​about​ ​we​ ​make​ ​it​ ​more​ ​efficient?  
 
 
 

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