There’s an even better KPI to track for measuring growth than conversion rate. We’ll give you that unique KPI, explain what app conversion rates are, show you industry benchmarks, and explain why these rates aren’t good enough on their own to predict your app’s revenue and growth. - https://clevertap.com/blog/best-conversion-rate-for-mobile-app-downloads/

1. What’s the Best KPI for
Mobile App Growth?
And is conversion rate
a good KPI to use?

2. Traditionally…
Mobile app conversion rates are a standard
metric brands use to measure growth.
Conversion rate: the percentage of users who
undertake a specific action on your app that fulfills
a desired business objective, e.g., new users
making a first-time purchase.

3. But there’s a
better KPI
And it’s called CAC-to-conversion Rate.
CAC (customer acquisition cost) is the amount you
spend to acquire a new customer.

4. You get 3 distinct phases:
User installs your app User gives you email,
name, social login
User makes a purchase
or subscribes
CAC-to-register CAC-to-conversion
Subscribe
Purchase
CAC-to-install
When you break down
CAC into phases...

5. And each CAC phase
has a cost.
Here are typical acquisition costs for
B2C companies.
CAC-to-registerCAC-to-install
$1 - 5 $5 - 30
CAC-to-conversion
Purchase
Subscribe
$100+
$30-100

6. CAC-to-install
$1 - 5It costs $1-5 to acquire each user who installs the app.
This range exists because of differences in verticals.
E.g., ecommerce apps are more competitive and cost
more to advertise, so you pay more to acquire users.
This metric is largely out of your control as it’s set by
the marketplace.
Let’s go through
each phase

7. CAC-to-register
$5-30
It costs $5 - 30 to acquire each user who then
registers, which means giving you their email, name,
or social login.
Only a small percentage of your installed users go on
to register. But they do so only once in their customer
lifetime.

8. For simplicity’s sake, we group Purchase and
Subscribe under one umbrella, the CAC-to-conversion.
Again, only a small percentage of those who register
actually convert and give you their money.
This is the KPI that you should be tracking
for growth.
CAC-to-conversion
Purchase
Subscribe
$100+
$30-100

9. Conversion is ongoing
Why the last phase
is the best
CAC-to-install CAC-to-register CAC-to-conversion
SubscribePurchase

10. Why bother with
CAC-to-conversion?
Conversion rates are lackluster if you use them alone. Instead, support them with
the CAC-to-conversion rate. Here’s why:
Growth depends on acquiring the right type of customers.
CAC better measures how much it costs to acquire a new paying customer.
CAC-to-conversion is a metric that you can directly improve. By lowering this rate,
you get better ROI.
Conversion is ongoing. You can upsell, cross-sell, and encourage users to make
repeat purchases or renew subscriptions.

11. Learn More
About CAC-To-Conversion
https://clevertap.com/blog/best-conversion-rate-for-mobile-app-downloads/
Convert, Retain, And Grow Your Mobile Users
www.clevertap.com