Steps to measure ROI for app development

If you want to learn how business works first, you should understand the terms which are related to business. Among all these, the one which is majorly used is return of investment (ROI) which is a method of determining the efficiency of an investment.  It is a key metric used to rank the attractiveness of the number of different types of investment alternatives and is expresses as a percentage. So, when a business spends USD 1000 per month on an advertising campaign also generates USD 2000 in return directly from the campaign, you get ROI by dividing 2000 by 1000 which is equal to 2.

App Development Companies

Which shows that every single dollar spends on the campaign, the business earned 2 dollars. ROI calculation helps you understand what and all is working for you and what is against your business. Hence you can invest in areas where you can earn and generate more revenue.


ROI in App development –

Remember of the last few times you purchased in-store or online? Most of us use our phones to pay for the purchase. The convenience of such purchase offer has attracted many people to online purchase which is in the result of boosting mobile commerce. As per the recent research, mobile commerce will reach USD 25 billion in 2020. Well, this trend helps the organization to realize the importance of mobile and their work applications. There are certain obvious advantages found in

mobile app Development Company

for business.


ROI in different types of apps and their steps involved in measuring for an app are given following: –


ROI in the development of hybrid as well as paid apps –

Pay per download model works as the fastest way to obtain an immediate ROI for your app development. However, a given method is not received well by the users as they are not ready to pay an initial cost which they have not tested. Customers usually keep high expectation of such apps which are often not met hence resulting customers unsatisfied most of the times.


Not all the app is designed to make money directly. There is another way to monetize the apps rather than making customers pay for the first time. Different types of business models used for application, by following two among them have gained popularity among paid for apps.


  • Setting the nominal price for downloading the app



In these types of the cases, the price for the downloading the app is usually kept very nominal so that the purchase for the customers is not very high such type of application development usually obtains a satisfactory ROI in the long run.


  • Setting a high price for downloading the app



In these types of the cases, the price for the downloading the app is usually high for the app because they are sure that product will get sold. It applies in such cases where the ROI for the app is guaranteed other it can backfire.


ROI in hybrid app development –

The hybrid app gives more possibilities for monetization hence they are found in ample amount in the market. Such apps focus on obtaining benefits after downloaded. ROI for these achieved from advertising, in-app purchase, subscription, and payments.


ROI in mobile app development –

ROI accomplished in different ways in app development. Some companies even sell user information to third parties to generate revenue. Others analyse user behaviour and patterns within the industry. As long as the app providing the service which is useful to the customers, the app is a bond to obtain a good ROI.


Steps for measuring ROI for mobile apps


Objectives –

The most vital step of all to know what you want to achieve from an app. It should start before the designing of the screens and before writing the code. Every mobile campaign can be measured by one of the two intended outcomes.


  • Analyze your customer interaction

    : Focus on user acquisition and retention rate.

  • Analyze your workplace efficiency

    : Focus on sales and marketing, assets management.


The mobile app developer should be clear about the business objectives of all stages of app development. Without proper implementation of this step, you may not be able to utilize your funds in the app development process.



App development cost

-This step is essential because you need to ensure that you keep within the confines of the budget and do not consume may excessive resources in the app development process. Managing an account of the development cost is necessary because you need it to measure it against the key performance indicators as discussed.



Development costs generally include below costs


  • Implementation
  • Hardware
  • Support and integration


We should also keep in our mind that as soon as the app is developed, there will need of a maintenance team which will add to the long term development.


Each app is a measurable KPI –

Key performance indicators are business keys used to evaluate the factors which are essential for the success of an organization. Which is also different from one organization to another some may consider the net revenue as a KPI, while others might consider customer loyalty metric rate as a key performance indicator.


For a workplace efficiency, metrics will give you an idea about the performance of your app and its impact on your sales, to evaluate the maintenance costs and equipment uptime. These metrics will help your campaign efforts from multiple angles and help you maximize your results in a way you like.


Well, the bottom line is the market shifts towards a digital world too many businesses have come to a cutting edge to invest in mobile

app development companies.

Understanding and calculating the ROI of your app do not only increase the results also help to grow your business in the right direction.


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iOS app

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