Top 4 KPIs For A Successful Shopping App User Acquisition Strategy

Mapendo Team
July 7, 2022
Top 4 KPIs For A Successful Shopping App User Acquisition Strategy

To manage user acquisition for your shopping app, a number of indicators must be measured and tracked. Each KPI gives details on how well your shopping app is doing in a specific area, such as user experience, retention rates or monetization.

But not all KPIs are created equal. Some are more helpful than others for guiding user acquisition for shopping apps. With this in mind, in order to understand what are the metrics that matter, we have put together the following list the 4 most important shopping app metrics to follow: 

Lifetime value (LTV)

Lifetime value (LTV) is a core metric in mobile app marketing, and can be defined as the revenue coming from a single app user, on average, during their “life” within the app

Why is it so important for shopping apps user acquisition? 

Lifetime value (LTV) is a fundamental metric in any app install campaign, but is particularly important for user acquisition of shopping apps as one of the main goals of any shopping app is to acquire users who come back to your app again and again, becoming a loyal customer and eager to buy more from you. For shopping apps, it is much more cost effective to focus on building loyal customers, compared to that of hyper casual mobile gaming apps who consider a day-1 retention rate of 35% as successful . 

There are a few strategies you can use if you want to increase the LTV for your shopping app:

  • Making it simple for customers to return items they have purchased from you
  • Establishing expectations for delivery dates
  • Developing a reward program to encourage repeat purchases
  • Providing freebies in exchange for purchases
  • Stay in touch: Make it simple for long-term clients to contact you since they want to know you didn't forget them

Customer Acquisition Costs

CAC — Customer acquisition cost goes hand-in-hand with LTV, and optimizing this particular metric is also key to maximizing your return on ad spend (ROAS). 

CAC is the cost of acquiring a new customer. This KPI is used by marketers to maximize their return on advertising spend (ROAS). If it is possible to lower the cost of gaining paying users, the shopping app’s profit margin will increase and bring in more revenue.

Why is this important for shopping apps user acquisition?

Well there are extra costs that are normally needed  for shopping apps to bring in new users. This can range from offering discounted prices, providing freebies in exchange for purchases, and seasonal sales, to the general cost of developing in-app materials. Knowing how much work it takes to get a customer to make in-app purchases allows you to adjust your marketing tactics, which ultimately decreases your CPA.

For instance, after evaluating their data, shopping apps may discover that they are overpaying for user acquisition. As a solution, costs can be decreased with a simple change to advertisements or by segmenting the audience into smaller clusters that might be optimized. By stopping UA activity for the most expensive clusters, an advertiser might obtain better user acquisition KPI for their shopping app.

Sessions per user

Sessions per user is a good indicator of how effective your shopping app’s user acquisition strategies are. It is basically the digital equivalent of visiting a store. 

You want your users to return often, whether they are merely window shopping or seeking something in particular. If you notice that they aren't returning frequently to your shopping app, a smart push notification approach with deep links is a viable solution. This gentle nudge will work to draw users inside your shopping app. The retention rates, which show you how many users you manage to keep over time, can be improved by applying the same strategies.

Conversion rate

It is known as the percentage of users who actually make an transaction from your shopping app.

Every app has a distinct definition of a conversion, but in the shopping app industry, apps most likely want to focus on more than just a first install. Consider measures to boost sales if your conversion rate is low when compared to competing shopping apps. Strategically placed discount offers or reminders about sales, as well as push notifications or emails regarding abandoned carts can be helpful.

To gain insight into your user's in-app behaviors, you can compare conversion rate values with those of other metrics including traffic sources, average order values, session times and more. The results will help you not only improve your conversion rates but also your pricing strategy, copywriting, and SEO, which will enhance the whole appeal of your shopping app. 


In this post, we've looked at which KPIs you need to follow in order to optimize your shopping apps user acquisition strategy.  We’ve also outlined what exactly makes each of these metrics important in the shopping app world, as well as some best practices to assist you in making the most of those KPIs.

Now that you have a better knowledge of the crucial shopping app metrics to keep an eye on, it's time to put what you've learned into practice. Building a successful app install campaign will depend on how you use them within your shopping app user acquisition plan.