Having a comprehensive vision of your revenue is critical for any business, and this is especially true for mobile app development companies. For companies that rely on subscribers, understanding the flow of payments from those who use your product can be the difference between success and failure. The best way to stay up to date about expected revenue is with an app analytics service. These services can give you key insights into the performance of your platform from many perspectives, including a financial perspective. But why use an external service rather than do it yourself?
Why Use an External Revenue Analytics tool?
When your company is new and you are trying to get everything going, it can be easy to try to do everything yourself. But when you partner with other companies, you are giving your company the tools to grow. Mobile app development companies already have to deal with many issues such as development, recruiting, and building their company’s infrastructure. Why take on more work that can be outsourced to another company that specializes in this and take away some of the burdens. Also, and most importantly, the analytics they offer can increase your revenue.
Subscription Analytics Services
One of the new mobile subscription analytics services is Appflow.ai. Appflow.ai provides its clients with a series of tools to measure their revenue stream. Their dashboard tells you about the overall revenue per period, overall revenue without commission, the LTV, as well as the revenue by platform/country and by the SKU. This subscription revenue report explains not only what your income is, but who it’s from which can help your business create an accurate forecast.
The overall revenue metric is the sum of all payments filtered by dates. Since subscription times can vary (yearly, monthly, etc.) it is necessary to understand what the total is per each date to get an accurate picture. This data takes into account refunds, commissions, and other revenue inhibitors, giving the company a complete financial picture to work with.
The overall revenue without commission shows you the total revenue without the commission rate factored in. While this might seem simple, with Appflow.ai, this can be adjusted based on the size of your business relative to revenue since Google and Apple are offering reduced commissions to some businesses. This is where having a subscription analytics service can really help.
The LTV or a user’s value over time is a metric that measures how much a user has spent on the app over time. For Appflow.ai this means the average payment per user per month/churn rate for the period. This metric is helpful in different ways. Firstly, it gives a business insight into their model by giving data on the revenue to cost analysis per user over a given time (depending on the subscription model). And secondly, it explains how users are interacting with the app over time.
In addition to the LTV, you can also look at the revenue by platform. Apps can and do generate different amounts of revenue based on which platform they are used on. For a mobile app analytics company, they can compare their iOS analytics and Android analytics to see how the app performed based on its platform.
With revenue analytics metrics, companies can also filter payments and users by location or more specifically by country. This will tell the company where people are using their app relative to their total income. This can help a company decide where to expend its financial resources to have the most gains. With Appflow.ai, users can filter payments by both time and country.
With Appflow.ai’s dashboard, you can also view, and filter revenue based on SKU. Depending on your app and how users subscribe, this can give your company data relative to SKUs and their revenue distribution over time.
Final Words
We all want our business to be successful, but to do this we need data. There are many metrics available to measure a wide range of things but when it comes to understanding payments, app development companies need revenue analytics from a subscription analytics provider.
Revenue Analytics Metrics: Understanding Payments
