Purchase Frequency measures the number of times an average customer makes an app-related purchases over a designated period.
This metric enables app developers and acquisition managers to keep track of their existing users and their purchases. It also indicates how many users are not spending and are using an app for free. There are two key ways to grow your revenue from existing users, get them to spend more (QRPU), or get them to spend more often (PF).
By identifying the active spenders, app acquisition managers can reward high PF users or exclude them from targeted remarketing advertisements. PF can also help to refine ad campaigns to engage non-spenders specifically.
Significance to Strategy Development
PF accurately measures user loyalty and audience’s purchasing behavior and helps app acquisition managers identify gaps in running marketing campaigns. It enables them to exclude already-paying users from further ad drives and highlights underperforming products or other app aspects.
The formula for calculating Purchase Frequency (PF) is:
Purchase Frequency = Total Number of Purchases Over a Specific Period ÷ Total Number of Users Over the Same Period
If a gaming app had 1,500 in-app purchases over 30 days and a recorded 7,500 users for the same period, its PF would be 20%. This would prompt a relook at marketing strategies to align better with the user audience. If the same metrics are measured over the following 30 days after adapting the ads, and the PF registers as 23%, it would indicate greater success and warrant continuing with the altered strategy.
More Essential Mobile App Marketing KPIs:
Learn about the essential Key Performance Indicators to measure and improve your mobile app marketing acquisition, engagement, retention, conversion and campaign performance. Check out more KPI metrics to measure your app success:
- App Installs
- Average Order Value (AOV)
- Average Revenue Per User (ARPU)
- Cost Per Install, Cost Per Action and Customer
Acquisition Cost (CPI, CPA, CAC)
- Daily Active Users (DAUs) and Monthly Active
- Install per Mille (IPM)
- Install to Payer Conversion
- Lifetime Value (LTV)
- Return On Ad Spend (ROAS)