Experimentation Metrics

In your experimentation process, it's crucial to understand and measure the impact of your changes effectively. To do so, you'll rely on various key metrics that provide insights into different aspects of user behavior and revenue generation. Here are the metrics used in your experiments:

Average Revenue Per User at 7 Days (ARPU 7 Days)

Definition: Average Revenue Per User at 7 Days (ARPU 7 Days) is a metric that measures the revenue generated by users within the first 7 days of starting a trial or a paid subscription.
User Segment: Recruited users in this context are users who have initiated a subscription or started a trial during the measurement period.
Calculation: To calculate ARPU 7 Days, sum the revenue generated within the first 7 days from both trial users and subscription users and then divide this sum by the total number of users in the experiment group.
Relevance: This metric is relevant for assessing the early-stage revenue generated by new users, helping you understand the initial financial impact of your pricing and subscription strategies.

Trial Conversion Rate

Definition: Trial Conversion Rate measures the percentage of new users who started a trial within a specified period and went on to convert to a paid subscription (usually after 7 days).
User Segment: Recruited users in this context specifically refers to users who initiated a trial within the defined timeframe.
Calculation: To calculate Trial Conversion Rate, divide the number of new users who started a trial and later converted to a paid subscription by the total number of users in the experimentat group.
Relevance: This metric is critical for understanding how effective your trial offerings are in converting users into paying customers.

Install Conversion Rate at 7 Days

Definition: Install Conversion Rate at 7 Days measures the percentage of new users who installed the mobile app and, within 7 days of installation, converted to either a trial or a paid subscription.
User Segment: Recruited users in this context refers to users who installed the mobile app within the designated timeframe.
Calculation: To calculate Install Conversion Rate at 7 Days, divide the number of new users who installed the app and subsequently initiated a trial or subscription within 7 days by the total number users in the experiment group.
Relevance: This metric provides insights into the effectiveness of your mobile app in quickly converting new installations into trial users or paying customers.

By closely monitoring and analysing these metrics, you can gain a comprehensive understanding of user behavior, trial conversion efficiency, and early-stage revenue generation within your mobile app. These insights are invaluable for making informed decisions and optimizing your revenue management strategies.