In-app analytics, conversion value refers to the revenue or business value generated from users completing desired in-app actions or conversions. Each conversion type is assigned a monetary value.
Common examples include:
- Purchase: Total dollar amount of purchase
- Subscription Sign-up: Average monthly subscription value
- Account Registration: Predicted lifetime value of user
- Content Download: Value of generated lead
- Tutorial Completion: Improved engagement value
When conversions occur, the associated values get tallied to determine the conversion value metric. This provides an estimate of revenue generated through in-app conversions.
What is a Good Conversion Rate for an App?
A good conversion rate depends on the specific app vertical and monetization model. Here are benchmark targets for popular app categories:
- Ecommerce: 1-3% conversion rate from product views to purchases.
- Gaming: 5-15% conversion rate for in-app purchases.
- Subscription Media: 30-50% conversion from trials to paid plans.
- On-Demand Service: 15-30% booking conversion rate.
- Travel: 5-12% conversion rate from referrals to bookings.
The conversion rate is calculated as conversions divided by the number of opportunities. App teams should track conversion rate by marketing channel, user segment, and other cuts to optimize.
What Does Conversion Rate Mean for Apps?
Conversion rate for apps measures the percentage of users completing a desired revenue-generating action. It is calculated as:
Conversion Rate = (Total Conversions / Total Conversion Opportunities) x 100
For example, an e-commerce app might track purchase conversion rates and find 5% of all product page visitors make a purchase.
Higher conversion rates indicate users are successfully taking intended actions that translate to business value. Tracking conversion rates and values helps apps optimize monetization.
Q1: What are conversion value rules in API?
A1: Conversion value rules in API allow assigning monetary values to different conversion events so they can be quantified in analytics.
Q2: Is 2% conversion rate good?
A2: Whether 2% conversion rate is good depends on the industry, with e-commerce averaging 1-3% and finance/SaaS around 2-5% typically.
Q3: How is Conversion value calculated?
A3: Conversion value is calculated by multiplying the number of conversions by the preset monetary value assigned to that conversion event type.
Q4: How is conversion calculated?
A4: Conversion is calculated by dividing the number of times a conversion event occurs by the number of opportunities for that event.
Q5: What is maximize conversion value?
A5: Maximize conversion value refers to increasing the overall revenue derived from conversion events by improving conversion rates.