Key performance indicators (KPIs), as their name implies, are crucial for determining how well your mobile app is working and how well you are applying your app user acquisition strategy. Numerous KPIs can be measured by applications, however based on your app vertical, the KPIs most important to your company may differ.
Some KPIs, from customer acquisition cost (CAC) to retention rates, are universal, but the importance that each app accords to a given KPI varies on its objectives, benchmarks set by competitors, and other unique considerations.
In the article we are going to take a closer look at fintech apps, and what are the specific KPIs that will help you build the best performing fintech app.
Fintech App Industry
Fintech Apps represent a growing vertical, which saw a huge increase in downloads and revenues since the pandemic started in 2020. This app category includes payment apps, investment apps and banking apps.
To be successful in this growing market your app user acquisition strategy must be crafted to target the right users and catch their attention. Monitoring the correct KPIs is the first step in this process, and by the end of this article you will be equipped with the tools to make the best performing fintech app possible.
Top KPIs for fintech apps
Average time to first transaction
This first KPI is especially important for fintech apps. Whether your goal is for users to set up direct deposit, buy stocks, or simply do their banking online, knowing how long it takes your users to complete those actions can help you optimize the process, improve your app user acquisition strategy and ultimately decrease the amount of time it takes users to make the first transaction.
Monthly active users
While identifying retention rates in the first week is always a good strategy, by taking a wider lens and looking at a month you can get a better understanding of how happy and engaged your fintech users are. Are they coming back to make deposits, send money, or even apply for new products?
Customer Acquisition Cost (CAC)
Nearly everything you do depends on your ability to calculate the cost of acquiring each new customer. Fom calculating marketing budgets to realizing the worth of each consumer, the cost of your user is inherent with the success of your app user acquisition strategy.
The install-to-registration is generally high for fintech apps, meaning it is wise to keep an eye on this KPI as part of your app user acquisition strategy. In fact, in a report by Appsflyer, it was found that 60% of registered users across all markets examined complete the registration process within the first 24 hours post install; by day 14 numbers hit 90%.
Specific to iOS users, the same report found that 70% of iOS registered users registered in the first 24 hours, 10% more than the share on Android. However, both iOS and Android reached 90% registration on day 15. Take a look at the following graph where we compare the install-to-registration rates per country:
Customer retention rate
Dealing with customer turnover just makes it more difficult to onboard new customers, which is already a difficult undertaking. However when it comes to building the best performing fintech app, long-term customer retention is highly advantageous and a sign of quality services and dedication.
You can follow this formula to define the retention rate:
Retention Rate = (Customers at the end of a period – New customers added / Customers at the start of the period) x 100
With just a 5% increase in the customer retention rate having the ability to boost revenue up to 95%, this is a KPI you want to keep your eye on.
The average revenue per user or ARPU measures the amount of money that a company gets from an individual customer. While there is no rule, the ARPU is generally calculated on a monthly basis, i.e., the average revenue being generated per customer in a month. If we consider a monthly period, it is as follows:
ARPU = Total revenue generated in a month / Total number of customers
Carefully monitoring these KPIs will tell you how well your application performs from a technical standpoint, how engaged your users are, and how much money active users bring to your business.
Once your KPIs are defined, look at how you can improve them with audience activation and user engagement tools , so as to improve your app user acquisition strategy. Applying all 6 keys metric will help you on your way to converting the best performing fintech app.