App growth metrics are essential for measuring performance, understanding user behaviour and optimising strategies for long-term success. Whilst many core metrics remain relevant, advancements in data tracking and user analytics have allowed marketers to adopt more sophisticated approaches to app growth.
This two-part guide explores the 11 most important app growth metrics for 2025 – categorised across acquisition, activation, retention, monetisation and virality. In part one, we will focus on how to attract and activate users effectively, whilst in part two we will dive into retention, monetisation and scaling your app’s user base.
What are app growth metrics?
App growth metrics are performance indicators that provide insight into the entire app lifecycle. They help track how users interact with the app, highlight trends in engagement and identify points in the journey where users are more likely to convert or churn.
Many of the core growth metrics we use to analyse mobile apps, and their users remain consistent over time – for good reason: they work. However, as our understanding of how mobile consumers behaviour evolves, and so does our ability to track and analyse data more intelligently. This opens the door to incorporating more advanced growth metrics into app marketing strategies, allowing for deeper insights and more effective decision-making.
How to choose the right app growth metrics for your app?
Choosing the right app growth metrics can depend on many factors, including your business goals, app category and growth stage. A core set of metrics is essential for understanding your app’s performance and making informed decisions.
These core metrics typically fall into 5 main categories:
- Acquisition – How users discover your app
- Activation – How engaged they are early on
- Retention – How well you keep your users
- Monetisation – How well you generate revenue
- Virality – How well your app spreads
Let’s take a look at the six app growth metrics you should be tracking, and why.
Acquisition metrics
1. Customer Acquisition Cost (CAC)
Customer Acquisition Cost – also known as Cost Per Acquisition – measures the cost of acquiring a paying customer, helping access the efficiency and sustainability of your acquisition strategy.
To calculate CAC you divide the total marketing and sales spend by the number of paying users acquired.
For example, if you spent $2,000 on marketing and acquire50 paying users, your CAC would be $40 per user.
How do you know if your CAC is high or low? The average CAC varies by industry and app category, but as a rule of thumb your CAC should be lower than your Customer Lifetime Value (LTV) to ensure profitability.
2. Click-Through Rate
CTR is a crucial app growth metric and reflects how engaging and compelling your ads or organic listings are to potential users. CTR calculates the number of people who see your ad vs click your ad.
A high CTR indicates effective ad creatives as they capture attention and driving action, while a low CTR signals the need for optimisation through A/B and creative testing.
This can be achieved by testing different aspects such as visual design (colour schemes, copy, layout, imagery), ad messaging, and formats (static images vs. video ads). A/B testing allows you to compare variations and determine which elements drive the highest engagement.
By continuously refining your creatives based on data-driven insights, you can not only boost CTR but also optimise ad spend and maximise overall campaign performance.
3. Install Rate (IR)
IR measures how effectively your app store page converts visitors into users.
A high install rate indicates that your app store experience is compelling and aligned with user expectations, while a low install rate suggests a need for optimisation.
One way to improve install rates is through Custom Product Pages (CPPs), which allow you to create tailored versions of your App Store listing for different audiences, keywords, and campaigns. By aligning messaging and visuals with user expectations, CPPs help create a seamless experience from ad to store page, reducing friction and increasing the likelihood of conversion.
For example, a gaming app running separate campaigns for casual and hardcore gamers can direct each audience to a customised store page highlighting the most relevant features.
By leveraging CPPs, you can increase user experience, increase install rates, and enhance campaign efficiency.
Activation metrics
4. Activation Rate
Activation Rate measures how many users take a key first action after installing your app, such as signing up, completing onboarding, making a first purchase or engaging with a core feature.
A high activation rate means users quickly see value in your app. A low rate suggests friction in onboarding or unclear value propositions.
Total New Installs indicate the total number of users who installed the app within a given period.
For example, suppose your app offers a free trial and runs a paid ad campaign that reaches 10,000 potential users. If 3,000 of those users sign up and start the trial after clicking on the ad, your activation rate would be 30% (3,000 / 10,000 * 100).
A high activation rate means your onboarding is successfully demonstrating your app’s value to users. A low activation rate, on the other hand, indicates friction in the user journey -whether from confusing onboarding, unclear value propositions, or a lack of immediate engagement hooks.
5. Time to first key action
Time to First Key Action measures how long it takes for a new user to complete an essential in-app action. This could be signing up, making a purchase, completing onboarding, or engaging with a core feature – whichever action is most indicative of long-term retention and success for your app.
For example, if a user installs an e-commerce app at 12.00pm and makes their first purchase at 12.30pm, their time to first key action is 30 minutes.
Measuring this metric provides valuable insights into new user engagement. A fast “aha moment” indicates that users quickly grasp the product’s value, leading to higher engagement and long-term investment in the app.
Conversely, a longer time to activation may signal friction in the onboarding process or challenges in communicating the app’s core benefits.
Final thoughts
Acquisition and activation are the foundation of any successful app growth strategy. By tracking key metrics like CAC, CTR, Install Rate, Activation Rate, and Time to First Key Action, you can refine your marketing efforts, streamline onboarding, and ensure users experience value from the moment they install your app.
However, attracting and activating users is only part of the equation. Long-term success depends on retaining users, driving monetisation, and leveraging virality to scale your app efficiently. In Part 2, we’ll explore the essential metrics that help sustain growth beyond the initial download, ensuring your app not only acquires users but keeps them engaged and profitable.
