Tal shares his views on industry trends, the rise of influencers and UA in new, original ways.

BlueThrone | Tal Turpaz, our Head of Acquisitions, at the Israeli Mobile Summit 2022

Have you checked on your competition lately? On a good month, the app market sees 

on the Apple App Store. If that makes you nervous, it’s because it’s scary. Fierce competition puts 

 before they are forgotten or uninstalled. The apps that dodge deletion lose 

 by the end of the third day. That’s a lot.

How can you avoid this or similar faith? You can 

Measuring the number of active users, retention rate, and conversions is not only for the winners. This is not about attracting new users with fancy numbers (although you can do that, too). More importantly, these insightful engagement metrics can 

Before we dive deeper into key engagement metrics, let’s talk briefly about what it means. When we talk about “engaging” apps, we usually refer to being “hooked” on using them. But not all apps are meant to be used like that. 

An app is engaging when it gives its users what they want

Successful app developers never lose sight of this distinction. Knowing that you can’t measure your app performance against benchmarks set by the likes of Facebook or TikTok can save you a lot of time and spare you a lot of disappointment. What should you measure, then? Let’s see.

When you’re researching a new app, what is the one thing you always check before you hit download? That’s right: 

. Why do you do that? What does this figure tell you, and how come developers and app stores always put it in a prominent spot?

In the app, software, and website space, the number of active users indicates 

whether or not you have a good digital product

, as opposed to others who forget they’ve downloaded it.

Defining Daily, Weekly, and Monthly Active Users

My two favorite apps are YouTube Music and DoorDash. I would say I use both of these apps all the time, even though I barely close YouTube and I only open DoorDash on Friday nights. But that’s not because I like DoorDash any less; it’s because I’m trying to change my eating habits.

The point is: When it comes to app usage, there

 is no universal definition of “active”

. Many apps are used daily, while others are opened once a week or month. That’s why this metric has three different subtypes—

daily active users, weekly active users, 

 (the number of days per month users engage with an app, otherwise known as 

. Still, it’s important to keep in mind that industry benchmarking isn’t applicable to all apps. A better strategy is to measure 

Interpreting and Leveraging Active User Data

The number of active users interacting with your app can tell you volumes about the 

. Modern-day users don’t return to apps they don’t like or find difficult to use. With around 

 and over 1.81 M Apple Store apps, they don’t need to.

, whereas a declining trend implies the opposite.

On top of that, the active users metric helps you calculate other key performance indicators (KPIs), like 

. This figure is also crucial for determining the app’s retention rate, which ultimately translates to an important metric called 

Strategies to Increase Active User Counts

Realizing that not many people enjoy your app could be discouraging, but it can also 

. Look at your online reviews and what people say about you on forums and social media. Then, use that feedback to increase your app’s active user counts.

Some of the best strategies for growing active users in a mobile app include:

: It can increase the number of kept users by 

. The app introduction should be short and sweet, teaching the user how to interact with features and how to maximize the benefits.

, a popular reading app with 32 million users, invites new users to curve their own 

 by sharing their likes and interests with the app in three fun steps.

. If you are not leveraging user data to personalize user experience, you will never get the figures you are hoping for. Personalization attracts, converts, and retains users.

 based on your target audience and their feedback. In-app offers, push notifications, retargeting ads, and all ideas worth exploring. You can also try introducing new features or subscription plans.

An app can have hundreds of active users interacting with its features frequently - but in different time intervals. To fully understand 

 people use your app. These metrics are called 

Understanding Session Length and Interval

 is the time that an average user spends on your app “in one sitting,” a.k.a. 

. This is a time period between two touchpoints: opening and closing an app.

The time between two consecutive sessions is called the 

. Depending on the type of app and what it is made for, the session interval is measured in 

Analyzing Session Data to Identify User Behavior Patterns

Session length and interval can reveal a lot about the 

, especially when analyzed in correlation with active users. If people are opening your app sporadically only to close it a couple of seconds later, that’s usually not a good sign. Your app is not keeping them engaged.

. Anything shorter than that indicates that the app is not giving users what they need and want—unless your app is made to provide quick information. 

, a brilliant health app for women, gives me all I need to know in under a second.

It’s similar to session intervals. Longer gaps between two interactions usually mean that your app is 

. This is especially true if the session length shows that users close it shortly after they open it. Long intervals followed by long sessions usually tell a different story.

 can teach you more about two crucial aspects of your app: 

. Sometimes, short session lengths don’t have to mean that users are losing interest. On the contrary, they might be a part of a behavioral pattern that reflects excitement.

Optimizing App Features to Encourage Longer Sessions

When it comes to app engagement, more usually means better. If measuring session length and interval repeatedly shows that users interact with your app only briefly and then go on a long hiatus before they eventually open the app again, that’s a call for immediate improvement.

Here’s what you can do to make people spend more time using your app:

 is dedicated to video/photo and social media apps. It’s the type of format and channel preferred by today’s mobile users. Creative UX design enables you to incorporate these elements where they are not usually needed. Think personalized local tips in navigation apps or video tutorials for analytics.

say they would spend more time on a mobile app if it had gamified elements. That’s why gaming and productivity apps have the highest retention rates. Gamification keeps users engaged for longer periods by having them complete tasks and get rewarded for it. It’s all about setting goals and hunting achievements.

 have been inspiring app developers for years, but there are other good examples to learn from. We especially like story-based 

, a fitness app that makes you run faster and longer to escape zombies.

Surely, you know that retention refers to the 

number of users who stay with you for a longer period of time

. But is it that simple? Of course not. Measuring your app’s retention rate is of key significance for 

There are two ways to gauge user loyalty in the app space—by calculating the aggregate retention rate and using cohort analysis. Let’s see the difference and explain how both work.

Simply put, this is the number of new users at the end of the month measured against the total number of installs during the same time.

Monthly active users ÷ Number of installs = Aggregate Retention Rate

Cohort analysis gives you more segmented insight and allows you to dive deeper into user engagement and loyalty for DAU, WAU, and MAU metrics.

DAU/WAU/MAU ÷ Daily/Weekly/Monthly Installs = Cohort Retention Rate

Why is your retention rate low or refuses to go up? Honestly, there are dozens of possible explanations for why users keep deciding to uninstall your app. Some common reasons include:

—The user’s first contact with the app should feel 

 is because they don’t use them. So, if you want better retention figures, you need to design a user experience that makes your app 

 say being treated like a person, not a number, is very important to winning their business. This applies to every industry and type of product, and mobile apps are no exception. App users demand personalized experiences.

 are more than technical upgrades. While they are critical for providing a better user experience, they are also greatly appreciated by users because 

. It’s a promise that more good things will come.

—Digital product users are growing increasingly weary of their privacy options. 

 consider their online privacy to be an important issue. If you can’t offer 

encryption and keep data away from third parties

—Immediate and friendly support is of special significance in app categories like tech

. These apps must provide easy ways for users to contact a representative and solve a problem, be that 

Best Practices for Improving Retention Rate

Marketers like to say, “There’s no retention without attention.” Corny as that is, it’s also true. The first step to improving user loyalty is coming up with figures and 

 of a declining retention rate. You should 

identify behavioral patterns and listen to user feedback

In most cases, developers see sizable improvements after 

 play a colossal role in this, as they can tell you exactly 

. If your onboarding process lacks clarity, go back and redo it. Not enough security updates? Make them more frequent.

 is a different kind of problem. This “not great, not terrible” situation is a bit more difficult to improve because it requires 

. It is what separates average apps from over-performing apps with millions of loyal users.

introduce a new feature or revisit UX design

 improve engagement, so think about adding 

challenges, streaks, coachmarks, in-app messages, etc

Industry Benchmarks for Retention Rate across Different App Categories

Ideally, your retention rate should keep increasing to show growth. But while your app is still new, and until you can measure user loyalty over time, you must have something to compare your retention rate against. That’s why app builders invest in app retention benchmark reports.

 in a certain timeframe can help you identify your churn rate. Churn is the 

, just the same as disengagement, which is the opposite of engagement. It happens every time a user 

 with certain aspects of the UX, so the churn rate is actually a very 

, this metric is also valuable for measuring 

. Every time you lose a user, you need to get a new one; churn can also help you 

calculate customer acquisition cost (CAC)

The formula for calculating the churn rate includes three measured values:

Number of uninstalls ÷ (Total number of users + Acquired users) = Churn rate

. For example, the monthly churn rate is the number of users who’ve installed the app during the month divided by the number of users you had at the beginning of the month and the new users you’ve acquired over that time.

Earlier, we mentioned that the number one reason people delete apps is because they stop using them. Why do they do that, though? 

are often a reason enough. Other explanations include 

Can you identify specific reasons for user churn? Sure. You can 

 in individual user journeys and analyze this behavior at a scale. If there is a specific problem that triggers uninstalls, analytics will show it.

 across platforms and see if certain keywords repeat more often than others. You should also 

. If somebody understands why people experience problems with your app, it’s them.

Implementing Strategies to Reduce Churn Rate

Low or high, the churn rate must be reduced. In ideal circumstances, your number of uninstalls should be zero. However impossible to achieve, the near-zero churn rate makes a good objective. It keeps app developers out of their comfort zone and constantly striving toward perfection.

Sign up to learn how tracking the right user engagement metrics can transform your app strategy and drive sustainable success

Boost Your App with Key User Engagement Metrics

Today, 25% of mobile apps are used only once before they are forgotten or uninstalled.

The apps that dodge deletion lose 77% of daily active users by the end of the third day. That’s a lot. 

How can you avoid this or similar faith? You can track key app engagement metrics. 

Measuring the number of active users, retention rate, and conversions is not only for the winners. This is not about attracting new users with fancy numbers (although you can do that, too).

More importantly, these insightful engagement metrics can help you make a really successful app. 

Engagement metrics are invaluable for monetizing your app.

25% of mobile apps are used only once before they are forgotten or uninstalled. How can you avoid this or similar faith? You can track key app engagement metrics.

App Failing? 10 User Engagement Metrics to the Rescue

Asking users for money can be daunting. After all, there’s an app out there that does something similar for free…

Plus, you’re still in beta. So how can you ask someone to pay you right now?

Better to make sure every feature is implemented before you turn on a paywall. For now, you can just show ads so people don’t get annoyed that they are being asked for money… right?

Ads can sometimes be a great source of revenue for an app with tons of casual users who don’t have an intent to pay—like Facebook.

However, it pays to think twice about whether your app falls into that category.

In today’s market, for an app that solves a problem, like a utility app, charging for a subscription can be a godsend. This is because there is a hidden cost to ads: They make your app look and feel cheaper.

Using in-app purchases is not only a perfectly ethical choice, but it can positively impact your users’ experience in the app—the part you spent most of your time and money building.

In-App Purchases, or IAPs for short, have been around as long as most people can remember. They can take several different forms, depending on the type of app you are trying to create:

: video games might have a consumable “power-up” that you buy and can use once. If you want to “power-up” again, you’d have to buy another one.

: these went under the radar for a while, but have recently gained some traction again as AI apps relying on expensive APIs have gained popularity. Tokens can allow users to buy in with a lower up-front cost and no auto-renewal, which can reduce the friction to purchasing.

Implementing in-app purchases takes a few steps.

First, you need to decide what you are selling, and whether you are implementing a token system or creating one-off consumables, as described above.

Next, you need to create digital products for your in-app purchases. You can do this in the developer console (

) for the marketplaces your app is hosted in. You will be able to set prices for your products here.

The developer of your app will need to integrate in-app purchases into the code. You can do this in one of two ways:

Implementing client-side purchasing logic and receipt validation through the platform-specific first-party framework, like 

, which manages the above in exchange for a small percentage of tracked revenue

You will need to create and develop paywalls, which are the screens that get shown to users when they try to access a feature or section of the app that requires them to make a purchase. You can use pre-made paywalls from the third party tools above, such as 

Finally, you will want to do extensive testing and verification that your purchases work as intended; this is one of the most sensitive areas of your app and is as close to the “bottom line” as you can get.

An example of an app using a token-based monetization strategy is 

now-infamous app that generates a respectable $2 per install

In ReelShort, users are allowed to watch a few episodes of each mini-video series for free, after which they need to purchase tokens to unlock the rest of the episodes in the series.

They can also earn “bonus tokens” by engaging with the app in certain ways – signing up, for example, earns you bonus tokens.

To know if non-subscription in-app purchases are your go-to strategy, you should consider the nature of your app and user engagement.

In-app purchases are great for gaming apps and content consumption apps, where users have a strong desire to make microtransactions at certain points during their use of the app. If your app offers distinct pieces of content that can be individually purchased and consumed, such as episodes in a series or boosts in a game or dating app, non-subscription in-app purchases can provide the requisite flexibility.

, mobile games were one of the top categories for in-app purchases, accounting for 72% of consumer spending on apps in 2020. This highlights that non-subscription IAPs are highly effective in apps with frequent and varied use, such as games.

Additionally, if you have an app with high costs associated with specific actions, like an AI video generator, you may consider testing your pricing model with tokens first to ensure you have a healthy margin. Later, you can migrate to subscriptions when your margin is more defined.

Non-subscription in-app purchases can also present a lower up-front cost to users, without a recurring commitment, reducing the barrier to making an initial purchase. This might make users more eager to buy sooner, even though they might end up spending more than they would on a subscription. Younger audiences or those in markets with less disposable income may prefer the flexibility of non-subscription IAPs. Conversely, professional users or those seeking premium, uninterrupted access might lean towards subscription models.

If your app benefits from seasonal boosts in usage, such as during special events or updates, non-subscription IAPs may help to capitalize.

Some notable drawbacks of non-subscription in-app purchases:

They do not encourage retention as much as subscriptions, which auto-renew.

If your users use the app more sporadically, such as a couple of times a month, you may be leaving money on the table. With a subscription, you would still be receiving money for the time they aren’t actively using the app.

Finally, the most effective way to decide can be to analyze your competitors' strategies. If similar apps in your category successfully use non-subscription in-app purchases, it might be an indication that this model resonates with users in your niche.

Subscriptions have become a staple in the app industry, offering continuous access to content or services for a recurring fee. Subscriptions have several dimensions:

: subscriptions can be weekly, monthly, or annual, to cater to users with different purchasing intents.

One user might see an $50 annual subscription as huge savings vs. a $10/month subscription, while another might see it as too much money to spend and prefer the $10/month price.

: A proven strategy is to offer a free trial that shows users the full value of the app for a limited time before they start to be charged. Paid trials are also possible, although rarer, where a user will pay a discounted price for a small period (e.g. $3 for a month, then $99/year).

: Apps with multiple distinct tiers of service might offer multiple tiers of subscriptions, each providing different levels of access or benefits.

Implementing subscriptions is very similar to implementing in-app purchases.

 What features would it make sense to gate to premium users?

 This is a rare practice in apps, and may complicate your design decisions. Users like to pay one price and know they can access everything.

 The more aggressive your monetization strategy, the more important it is to offer a free trial to proactively show users value. According to the 

 State of Subscription Apps Report, 71% of apps offered trials in 2023, a significant year-over-year increase on 2022, where only 60% of apps offered trials.

Next, you need to create digital products for your subscriptions. You can do this in the developer console (

As with in-app purchases, the developer of your app will need to integrate in-app purchases into the code. You can do this in one of two ways:

You will need to create and develop paywalls, which are the screens that get shown to users when they try to access a feature or section of the app that requires them to be subscribed. You can use pre-made paywalls from the third party tools above, such as 

Finally, as before, you will want to do extensive testing and verification that your purchases work as intended; this is one of the most sensitive areas of your app and is as close to the “bottom line” as you can get.

Many apps leverage subscriptions to great effect. Some examples are:

, which makes $2M in monthly revenue through subscriptions worldwide

, which uses subscriptions in conjunction with consumable in-app purchases to generate $61M in monthly revenue worldwide

, which also uses a combination of subscriptions and in-app purchases to generate $20M in monthly revenue worldwide

In certain categories, subscriptions dominate as a market trend. Most apps in these categories only offer subscriptions:

In contrast with gaming apps and entertainment apps, where users have a lot of psychologically addictive hooks that get them to want to make purchases almost every time they play, apps in these categories rely on longer-term commitments and value propositions that suit subscriptions better.

For example, a workout app might actually benefit the user by getting them to commit to a subscription, since the user will be more likely to implement positive lifestyle changes as a result of being committed.

If your app provides a professional service, like a video editor for monetized content creators, or a market analysis tool, you will want to strongly consider subscription-based pricing. Apps that become a necessary part of users’ week to week workflows benefit the users via predictable pricing.

In terms of benefits to you, the app owner, subscriptions can lock in significantly more lifetime value upfront from customers. This can matter if you are testing a new marketing strategy and want to quickly know what kind of return you can get on ad spend: you might offer annual subscriptions to see a much more readily available approximation of the lifetime value (

A final strength of subscriptions is that they provide frictionless billing, meaning users do not have to make a purchasing decision each time they want to extend their subscription: their card simply gets charged until they cancel. This can both improve the users’ workflow – no one wants to deal with billing every few days; and it can benefit your bottom line, as billing is automatic.

Finally, as above, the most effective way to decide can be to analyze your competitors' strategies. If similar apps in your category successfully use subscriptions, it might be an indication that this model resonates with users in your niche.

Sponsorships and partnerships are strategic collaborations where your app partners with other companies to promote their products. You can pick which products to promote, aligning them with your app’s brand and user base. This approach can generate revenue while enhancing user experience by introducing them to complementary products or services.

To implement a partnership, the first step is to 

: Look for brands that complement your app’s niche and have a similar target audience. For instance, a fitness app might partner with sports apparel brands or nutrition companies.

. Contact potential partners through channels like email or LinkedIn. Introduce your app, highlight user demographics, and explain the mutual benefits of a partnership.

With interested partners, you can proceed to the third step, 

: Create a detailed partnership proposal, including information on your app’s user base, engagement metrics, and how the partnership can benefit the brand. Propose various collaboration ideas, such as sponsored content, exclusive discounts, or in-app advertisements.

: Discuss and finalize the terms of the partnership. This includes the duration of the sponsorship, financial arrangements (fixed fee, revenue share, or per-click payments), and specific promotional activities.

At this point, you are ready to take the fifth step, 

 within your app. This could involve creating special sections for sponsored content, integrating brand logos, or developing exclusive features or challenges related to the partner's products.

Once the content is integrated, you and your partners can announce and promote it through your channels if necessary, and then monitor and observe the results of the partnership to see if it’s mutually beneficial and worth extending further.

, a fitness app that partners with athletic brands like 

. These partnerships not only presumably provide Strava with partnership revenue, but also enhance the app’s perceived value in the eyes of users, by offering exclusive content and challenges.

, a PR tool that leveraged partnerships with SEO communities like 

 to grow its user base by offering webinars and exclusive discounts.

If your app falls into one of these categories, it might be more suited to sponsorships and partnerships:

: Apps serving a specific community or interest, such as fitness, cooking, or travel, often find sponsorships and partnerships particularly effective. This is because these apps have a highly targeted user base that brands want to reach.

: If your app has a substantial user base, brands might be keen to partner with you to tap into this audience.

Meanwhile, these types of apps may struggle:

: Apps that serve broad purposes, such as productivity or utility apps, might find it challenging to attract relevant sponsorships that resonate with all users.

: If your app caters to a wide range of interests, finding sponsorships that appeal to your entire user base can be tricky and might dilute the app’s core value.

Join us to uncover the proven strategies for turning your app into a profitable venture by selling it to industry leaders.

Unlock the Secrets to Boosting App Revenue

Ads can sometimes be a great source of revenue for an app with tons of casual users who don’t have an intent to pay—like Facebook.

However, it pays to think twice about whether your app falls into that category.

In today’s market, for an app that solves a problem, like a utility app, charging for a subscription can be a godsend. This is because there is a hidden cost to ads: They make your app look and feel cheaper.

Using in-app purchases is not only a perfectly ethical choice, but it can positively impact your users’ experience in the app—the part you spent most of your time and money building.

Monetize your app without ads. Discover how in-app purchases and subscriptions can boost revenue and enhance user experience, even in beta.