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7 Growth Metrics That Actually Matter for App Marketers in 2025

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7 Growth Metrics That Actually Matter for App Marketers in 2025

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Introduction

Tracking installs is easy. Growing an app profitably? That’s a whole different game.

In 2025, app marketing is more competitive — and more data-driven — than ever. But too many teams still obsess over vanity metrics: downloads, likes, impressions. These numbers may look good on reports, but they often say nothing about user value, retention, or revenue.

If you’re serious about growing your app efficiently and sustainably, here are the 7 growth metrics that actually matter — and what they reveal about the health of your app marketing strategy.

1. Cost Per Retained User (CPRU)

Why It Matters:

CPI is only half the story. If your users drop off after day one, that “cheap install” quickly becomes a wasted budget.

How to Use It:

Track Cost Per Install and the Day 1 or Day 7 Retention Rate. Multiply them to get your CPRU.

Example:

  • CPI = $2.50

  • D7 Retention = 20%

  • CPRU = $12.50

This tells you what you’re really paying for a user who sticks around — which is a much more meaningful metric for long-term success.

2. Lifetime Value (LTV)

Why It Matters:

LTV shows how much a user is worth to your app over time — in revenue, engagement, or both.

How to Use It:

Calculate LTV by tracking average revenue per user (ARPU) over a defined period (30/60/90 days). Compare it directly against CAC (see below) to determine profitability.

LTV > CAC = scalable growth.
LTV < CAC = unsustainable churn machine.

3. Customer Acquisition Cost (CAC)

Why It Matters:

This is how much it costs you to get a new paying user — not just someone who installs the app.

How to Use It:

Include media spend, creative costs, tech fees, and agency costs. Divide total acquisition cost by the number of paying users acquired during that period.

CAC should always be tracked in relation to LTV — they go hand-in-hand.

4. Conversion Rate From Click to Install (CVR)

Why It Matters:

Your ad might be great, but if users are dropping off at the store page, you’re wasting money.

How to Use It:

Measure the percentage of ad clickers who actually install the app. Low CVR indicates poor creative-store match, unclear value proposition, or weak visuals.

Tip: A/B test your App Store and Google Play listings regularly — even minor changes to your screenshots or CTA copy can dramatically lift CVR and lower your effective CPI.

5. Activation Rate

Why It Matters:

An install is worthless if the user doesn’t complete key actions that indicate real usage or intent.

How to Use It:

Define what “activation” means in your app:

  • For a fitness app: completes onboarding + logs first workout

  • For a finance app: connects a bank account

  • For a game: finishes tutorial level

Track how many users hit that milestone in their first session or day. This is often a strong early predictor of retention and LTV.

6. Retention Rate (D1, D7, D30)

Why It Matters:

Retention = how many users come back to your app after their first use. Low retention = leaky bucket.

How to Use It:

Use tools like Firebase, Mixpanel, or Adjust to track:

  • Day 1 Retention – First impression

  • Day 7 Retention – Stickiness

  • Day 30 Retention – Habit formation

Improving retention often has a greater impact on revenue than acquiring new users. It’s the ultimate efficiency metric.

7. ROAS (Return on Ad Spend)

Why It Matters:

ROAS tells you whether your campaigns are profitable. It measures the direct return you’re getting from every dollar spent on advertising.

How to Use It:

Track both short-term ROAS (within 7–14 days) and long-term ROAS (30–90 days) to understand both payback window and long-term revenue growth.

ROAS = (Revenue from Ads / Cost of Ads) × 100

It’s not enough to break even. Aim for positive ROAS with margin, especially in paid user acquisition.

Bonus: Engagement Per Session

Not all value is monetary. If you’re a pre-monetization app or building toward virality, track qualitative metrics like:

  • Screens per session

  • Time in app

  • Feature usage depth

These signal user intent, satisfaction, and product-market fit — which ultimately feed back into LTV.

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