Key Performance Indicators (KPIs) Are the Notes that Make Apps Sing
A technological innovation that will “shake up everything” is how a new music-based dating app is being described. Power of Music (POM) is an app that works by matching people based on their musical preferences. Log into Apple music, for example, and then the app’s algorithm builds “emotional profiles” that can be matched. POM’s 22-year-old founder Vihaan Patel thinks they are going to change the world. There will undoubtedly be some who think musical matchmaking is a fabulous idea – finally, a break from the shallow, look-and-swipe model to pairings derived from more substance. Of course, others will argue that just because two people like a song by Drake doesn’t mean they share much in common. Whether, however, you are a fan of the idea of bonding through beats or not, here’s the real problem; POM already has competition – quite a bit in fact. Currently exclusively for iOS users, another concept is an app called Tastebuds, which also uses musical similarities to connect people. Then there is Vinylly… which launched in October 2019, just a few months before we all went into pandemic panic on no dance floors. It’s been observed that innovations frequently spring forward at similar times. So, how will one of these apps perhaps end up being Lord of the Dance? It will depend greatly on the app’s marketing strategy. Good ideas are sparks, but professional marketing service providers turn sparks into fire. Getting marketing right could propel one of these – or another contender – to the forefront.
A new app needs to get noticed not only by the media and by potential users, but also by investors who can infuse the idea with cash for marketing and advertising. To attract such investments, you’ll need to demonstrate potential in a host of key performance indicators (or KPIs). These KPIs include average daily attendance, per-client revenue, client retention rates, profit margins, and many more. As you might have noticed, none of the KPIs just mentioned are simple things to measure, nor are they easy to interpret. That’s why you’ll see article after article hamming home the need for getting professional app marketing services. There are multiple KPIs, and each app idea comes with its own set of KPI priorities: which only highlights the need for professional, strategic guidance. Media hype is nice but doesn’t necessarily translate into anything – KPIs are the true metrics by which an app is judged. In short, KPI assessments start with a lot of math. After the math is done, however, the numbers need to be interpreted. What does it mean if at the end of the period, your customer retention is mediocre but new customer numbers are high? How does that make sense? What should be done about it? What knowledge can you garner from the number of sessions your app generates? How many times a user opens the app each day and for how long can provide invaluable information, but every app has different goals and a different pathway to success.
Understanding what these metrics mean and having the experience to find ways to exploit or correct them is the work of professional analysts who have spent sometimes decades studying markets for mobile apps. Some developers get all excited because their app is being recommended on social media… and generally, the higher the rate of mentions the better, but the context is key. Where the app was shared and how it was referred to are equally important stats to know. Figuring out your “churn rate,” or the rate at which people unsubscribe or uninstall your app is likewise essential. But having the metrics won’t be useful if you don’t understand how the rate may be connected to either a lack of updates, or too many updates, or perhaps it’s new content or not enough new content. There are plenty of genius ideas waiting in the wing. And the fact that there are millions of apps already in various stores doesn’t mean there isn’t room for one more great one.
Pairing couples by their emotional connections to music or music tastes may end up being a billion-dollar idea or it may turn out to be a niche product. Perhaps the only people who bond over a shared love of musical tastes are those whose tastes are extremely divergent, such as what we assume is the tiny amount of people who only listen to death metal covers of K-pop songs. But even if the idea is golden, without the right marketing company guiding development, your chances of getting bulldozed by a perhaps inferior competitor who’s got a better understanding of how the game works are high. Without smart marketing, many inspired plans simply wilt on the vine. The 2020s are going to witness some incredible leaps forward in apps: machine learning, complex new algorithms, augmented reality, virtual reality, and more. But the winners are going to be those who understand the meaning behind KPI numbers. Make sure you’ve got the right team in place so your app comes out on top.