Investment Metrics that Count

As with any business, in particular software, there are several metrics that a potential investor will take into account when assessing your business as a potential investment. Further more, it is important that you as the business owner take the time to review these indicators as they can help guide you in the right direction in relation to strategic decisions, as well as learning how your app is received over time. The right information can help guide all of your business decisions and help you grow your audience and increase your revenue. When it comes to the people who are looking to invest in your business, they don’t just care about the day-to-day, they also want to see their time and money going to work to benefit them.

To investors, the most important metric is revenue. Investors put money down and expect to get their investment back at a future point in time. When you show your investors your metric reports, revenue should be highlighted, underlined and circled. It is important that you show them the value users find in the app, and most of all what that means for them, the investor. Some of the best ways to demonstrate your metrics is to include showing app purchases, total revenue, user lifetime value, in-app purchases and basically anything with a dollar sign next to it. Without the help of investors, it is plausible to suggest that your app may not get the traction it deserves.

Whether they hear of you through App Store advertising, word of mouth, or random search, you need to know how users are finding your app and what is leading them there. Sometimes getting new users means paying money to optimise your presence in the app store and online to increase awareness. Paid campaigns are a great way to inform potential users, and to keep track of them. By tracking acquisitions, you help everyone measure the ROI, and figure out the cost per user. Measuring the acquisition keeps you on top of the needs and future for your app.

The number one purpose and objective of most apps is growth and increasing usage. Some of the metric used to gauge the growth of an app are user retention, user acquisition, lifetime value, and changes in any of the above. It is no surprise that everyone is on their phone for multiple hours each day, and it is important to keep them engaged in your app. More and more, people choose mobile apps to interact with companies they care about. To measure your growth is important to give each investor peace of mind that their investment is worthwhile.

Engaging your users and encouraging them to return to your app is a crucial metric that you cannot overlook. Along with acquiring new users, it is important to measure how long users are interacting with your app and what features they are most drawn to. It is important that people don’t just download your app, you want them to use it. To get customer engagement your job is to provide value to each user. Measuring the current engagement helps you and your investors see what is most important to your user and how they can build on it. The most important thing to look for is app “stickiness,” which tells you how long your app stays in the minds of its users. Engagement is key to giving investors a full ROI. At the end of the day, engagement is almost the most important metric you need to pay attention to.

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