K

What is KPIs (Key Performance Indicators)?

Definition, examples, and more

Definition

Core metrics used to evaluate app performance, especially across acquisition, conversion, and retention. For subscription apps, common KPIs include Monthly Recurring Revenue (MRR), churn rate, Lifetime Value (LTV), trial-to-paid conversion, and activation rate.

Example

A meditation app tracks these KPIs in their weekly dashboard: MRR ($125,000), Monthly Churn Rate (4.8%), Trial-to-Paid Conversion (52%), ARPU ($3.20), DAU/MAU Ratio (0.28), and Install-to-Trial Rate (22%). When trial conversion dips below 50%, they investigate immediately. When churn spikes above 5%, they audit their dunning flows and engagement campaigns.

Why KPIs (Key Performance Indicators) Matters

KPIs focus your team on what matters and prevent drowning in data. A fitness app was tracking 50+ metrics but had no clear KPI framework. Different teams optimized different numbers, sometimes at cross-purposes (marketing optimized for installs while product optimized for engagement, neither tracking LTV). After establishing 5 core KPIs tied to revenue, every team aligned. Within 6 months, MRR grew 45% because everyone pulled in the same direction.

Frequently Asked Questions

What are the most important KPIs for subscription apps?

The essential five: 1) MRR (financial health), 2) Churn Rate (retention health), 3) Trial-to-Paid Conversion (monetization efficiency), 4) LTV (unit economics), 5) CAC or LTV/CAC ratio (growth sustainability). Track these weekly. Everything else is a supporting metric that helps explain changes in these five.

How many KPIs should I track?

Track 5-7 core KPIs at the company level. Each team can have 2-3 team-specific metrics that ladder up to the core KPIs. More than 10 KPIs means nothing is truly a key indicator. If everything is important, nothing is. Ruthlessly prioritize.

How do I set KPI targets for my subscription app?

Start with your current baseline and set improvement targets of 10-20% per quarter. Benchmark against industry data for your category (Botsi publishes subscription benchmarks). For early-stage apps, focus on month-over-month improvement trends rather than hitting specific absolute numbers. The direction matters more than the destination when you are still finding product-market fit.

Category
Subscription App Terminology
Related Area
Mobile App Growth & Monetization

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