During app, development ROI can be achieved in multiple ways. Some companies do it by selling user information to third parties for the generation of revenue. Some other companies analyze user pattern and behavior within a given industry.

You should keep in mind, as long as the app provides a service which is useful to its customers, it has every scope of generating a good ROI.

There are a few steps involved in the measurement of ROI of Mobile Apps.

Define Your Objectives

It is very crucial that you have a clear idea of what you want to achieve from your mobile app. This should be taken care of before you start designing the screens, even before you start writing your code for the app.

Every mobile campaign can be evaluated by any one of the two below intended outcomes.

  • > Evaluation of your consumer interaction: Focus is set on mobile influence, user acquisition, and retention rate.
  • > Evaluation of your workplace efficiency: Here, Focus is on sales and marketing, asset management and field service.

Without the adequate implementation of this step, you may not be able to effectively utilize your investments in the app development process.

App Development Cost

It is important because you might need to make sure that you operate within the confines of the budget and do not exploit any excessive resources in the app development procedure.

Keeping a check of the developmental costs is necessary because you are going to require it totally it against the key performance indicators.

Development Cost generally includes:

  • > Implementation costs
  • > Hardware costs
  • > Support and integration

Measurable KPI

Key Performance Indicators is a commercial metric used in the evaluation of the factors that are important for the success of an organization. They are different depending on one organization to another as some may consider net revenue as a KPI while others consider customer loyalty metric or retention rate as a key indicator of performance.

It goes hand in hand with the first step as the metrics will be different depending on the objectives of an app.

If you aim for customer interaction, you should know if your app is fetching new customers and then you can easily compare the costs of your mobile efforts against the efforts of other channels.

The metrics will tell you if the campaigns started by you is resulting in an increase or decrease in terms of leads. Thus; you will be able to compare the costs of your leads from mobile against those from other channels.

You can also get an outline of the influence of your mobile app on your customers and if it is impacting buyers’ behavior or not.

Measuring KPI against Costs

You have provided each app with a measurable KPI, you can now estimate the overall value of the app. You can evaluate the KPI measurements against the developmental costs of your app. You can know whether they outweigh them or not.

It is preferable to do this with a projected lifespan of the app in mind, or maybe at least the amount of time you want spend in upgrading and maintaining the app.

The ROI for your app development can be calculated by dividing Net Present Value (NPV advantages) over NPV costs. The two can be evaluated using the formulae:


Image Source- mindinventory


As the market is shifting towards a digitized world, many businesses have come forward to invest in mobile app development.

Understanding and appropriate calculation of the ROI of your app will not only maximize your results but also will help your business to grow in the right direction.

About the Author

Sourabh Sharma
I am an entrepreneur doing multitasking at any given point of time. One of my niches is working as a professional Writer where I share my views and opinions. I am very honest, sincere, and up-front blogger and jot down my unbiased opinions. In general, I prefer to write without being argumentative or contradicting anyone. To bash intelligence into some brains I might sound aggressive which is not at all offending, right?

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