Key Terms for App Growth

🧠 A

  • A/B testing – A must do, ongoing process. Test pricing, onboarding, UX and UI, paywall, homepage, store screenshots, subtitles, messaging, traffic channels, and more. It is a continuous cycle of optimization that improves performance over time.
  • App Store Optimization (ASO) – You have about 5 seconds to convince the user that this app is what they need. Use every element (icon, title, subtitle, screenshots, videos, even in app experiences) as your sales pitch to drive installs.
  • Apple Search Ads (ASA) – Apple advertising platform for targeting users inside the App Store.
  • ARPU (Average Revenue Per User) – Total revenue divided by total users within a given time frame, for example one month. Used to measure monetization efficiency.
  • ARPPU (Average Revenue Per Paying User) – Total revenue divided by paying users only. Shows how valuable each subscriber or paying customer is.

🧠 B

  • Billing cycle – Subscription term length such as weekly, monthly, or yearly.

🧠 C

  • Cancellation – When users end their subscriptions through the app store before the renewal date.
  • Churn rate – Percentage of subscriptions not renewed within a given period.
  • Customer Acquisition Cost (CAC) – Cost to acquire one new user. Often also called CPI (cost per install) or CPA (cost per acquisition).
  • Conversion Rate (CR) – Percentage of users who complete a desired action (for example subscribe or purchase) out of all users who viewed the offer or page.
  • CTR (Click Through Rate) – Percentage of users who click an ad or link out of the total impressions.

🧠 F

  • Free trial – Limited time access to premium features to encourage user conversion.
  • Freemium – Free usage tier with optional paid features or subscriptions.

🧠 H

  • Hard paywall – Blocks access to app features until the user subscribes or pays.
  • Soft paywall – Allows limited access before prompting the user to pay or subscribe.

🧠 I

  • In app purchase (IAP) – Transactions made inside the app through app store billing. Can include subscriptions, consumable items, or one time purchases such as ecommerce items.
  • Impressions – Number of times your ad or app listing is shown to users.

🧠 M

  • MRR (Monthly Recurring Revenue) – Revenue expected each month from active subscriptions.

🧠 O

  • Omnichannel – Using multiple platforms and channels to reach potential users and drive installs, for example paid ads, email, influencers, and SEO.

🧠 P

  • Paywall – UI element that prompts users to subscribe or pay in order to access premium features.

🧠 R

  • Renewal – Automatic continuation of a subscription at the end of the billing period.
  • Renewal rate – Percentage of users who renew their subscription at the end of a billing cycle.
  • Retention rate – Percentage of users still active or subscribed after a defined period.
  • ROAS (Return on Ad Spend) – Revenue earned for every dollar spent on advertising. A key metric for ad efficiency.
  • ROI (Return on Investment) – Measures the profitability of an investment such as marketing, development, or new features. Common formula, (gain minus cost) divided by cost.

🧠 S

  • Subscription – Recurring payment model that unlocks premium access to the app.
  • Software Development Kit (SDK) – Set of tools integrated into your app to enable specific functionality, for example analytics or RevenueCat integration.

🧠 T

  • Trial conversion rate – Percentage of trial users who become paying subscribers.
  • Trial period – Duration where users can access premium features for free.

🧠 U

  • UAC or GAC (Universal App Campaigns or Google App Campaigns) – Google automated ads platform used to drive app installs.
  • Upsell – Prompting users to upgrade to a more expensive plan or add on.