How to make a feasibility analysis of a mobile application

do you want to launch your own App and you don't know its viability? The viability analysis is the study that shows the success or failure of a mobile application, or any other project, based on a series of data. Any business needs it. It involves the evaluation of the development of the App for its correct functioning, but how can we do this analysis? It's better that you see it for yourself. Join us!

The feasibility analysis of an App

where to start? Any online or offline business needs a previous viability study or analysis because all of them are governed by a market where entry barriers, financial needs, customers and competitors are present. Launching a project without carrying out this analysis is condemning it to failure even before starting it. Remember this.

Therefore, the first thing you should do is to think about what need the application you want to develop covers. Once you are clear about this, you will have to look for applications on the market that already cover this need, look at how they do it and think about the added value you can provide. Look for ideas that are not yet on the market. Analyse the sector and its characteristics. Think about the contents you are going to include and the functionalities. Use metrics.

7 metrics to check the viability of your mobile application

It is very likely that you haven't even thought about what the main goal of your mobile application is going to be, but it is vital to know if it will be successful or not. At Occam Digital Agency we are experts in development and we are interested in knowing if your projects will be successful or not, so we want to help you check it through the following metrics:

1. MAU (Monthly Active Users). It measures the unique users who have logged in at least once a month in your app, so it is one of the first metrics you should take into account. Unlike DAU, it represents a group of consumers who interact with the app during a month, while DAU does it with daily active users.
2. USER STICKINESS: It measures the users that connect to the mobile application day after day, and it is achieved by combining the two previous metrics. It is widely used to detect if your App is addictive.
3. ARPU (Average Revenue Per User): Are you looking for the average revenue per user? Then this is the metric you need, as you only have to divide the total revenue by the number of active users during a DAU (daily) or MAU (monthly) period.
4. CHRUN RATE: This tool is not based on measuring revenue, but focuses on those customers who abandon the application. It allows you to find out, through forms, what is the reason why they leave and what is going wrong with your mobile App. Therefore, it is an important indicator for improvement.
5. ARPPU (Averange Revenue Per Paying User). If you are thinking of launching your paid app with Premium service, this metric is for you. It will help you to measure the average spending of the users, but it needs between 2-4% of the users to cover almost the total amount invested to know if the spending is enough or not.
6. LTV (Lifetime Value): With this tool you can find out the contribution that each user makes to the revenue of the application. It is very advantageous to evaluate the real cost of customer churn, for which ARPU and CHURN RATE are used.
7. CAC (Customer Acquisition Cost): This metric is perfect to find out how much it costs to attract and retain new users in the mobile app. With it you can calculate the cost per new user, taking into account the investment in advertising, marketing, etc.

are you ready to analyse the performance of your App, do you need help, tell us about it?

The advantages of doing a viability analysis on your mobile app

A feasibility project will help you to detect and evaluate in detail the economic possibilities you have to invest, as well as to study the production and marketing scope. To achieve this, you must take into account several things:

• Presentation of the promoter. Formal presentation of the responsible entrepreneur.
• Image we want to show of the company through the App.
• Financing needs and sources. All actions will need to have a certain amount of capital.
• Purchase analysis, detailing the values of the chosen suppliers.
• The location, where the company is located.
• The offer: products or services offered.

A complete feasibility analysis will allow you to:

• To make structured approaches for new projects.
• Identify the reasons why users stop using the App.
• Develop the basis for project implementation.
• Make improvement decisions.
  

In addition to all these points, it is also important to consider online marketing actions. Ready to bring to life the development of that app you have in mind?