Did you know that mobile app development is one of the fastest-growing industries in the world? In fact, according to recent studies, there are now over 5 billion mobile phone users globally, and this number is set to rise even further in the coming years.

  • Customer satisfaction level - An essential KPI for any mobile development agency to track is customer satisfaction. This metric can be collected through feedback forms or customer surveys and gives an indication of how happy clients are with the service and app developed.
  • Number of applications developed and launched - The number of apps developed and launched is a significant indicator of a mobile development agency's productivity, efficiency, and growth potential. It shows how well the agency can deliver on projects while maintaining the quality of the end product.

To be successful in the mobile app development industry, it's essential to track and evaluate your agency's performance constantly. By measuring revenue generated from mobile application projects, you can determine the financial stability and profitability of your agency.

  • Number of returning clients - The number of clients who continue to use the services of a mobile development agency after their first project is another key performance metric. A high number of returning clients is a sign of an agency's reliability, consistency, and reputation for quality.
  • Average time to develop and launch an application - Tracking the average time it takes to complete an application from ideation to launch can provide an insight into the productivity of your team and the efficiency of your development process.

Lastly, it's crucial to measure the percentage of applications developed that meet or exceed client requirements. This KPI provides an indication of how effectively an agency is catering to the needs and expectations of its clients.

Are you intrigued by these KPIs and want to know more about how to track and calculate them? Keep reading to learn about the top seven mobile development agency KPI metrics.



Customer satisfaction level

In today's highly competitive world, it's imperative for businesses to not only create high-quality mobile applications but also ensure customer satisfaction levels are maintained. It's essential for mobile development agencies to monitor their customer satisfaction levels regularly and take necessary steps towards improvement. The key performance indicator for measuring customer satisfaction is the customer satisfaction level.

Definition

The customer satisfaction level (CSat) is a KPI that measures the overall satisfaction level of customers with the mobile development agency's services and applications.

Use Case

The CSat KPI is critical in analyzing whether customers are happy with the services provided or not. By regularly tracking CSat, businesses can implement strategies to achieve higher customer retention rates and attract new clients.

How To Calculate KPI

The CSat KPI is calculated by taking the total number of satisfied customers and dividing it by the total number of customers. The output is represented as a percentage.

CSat = (Number of satisfied customers / Total number of customers) x 100

Calculation Example

Suppose a mobile development agency has 500 customers. Out of them, 450 are satisfied with the services provided. Then, the CSat of the agency is:

CSat = (450 / 500) x 100 = 90%

KPI Advantages

  • CSat KPI helps to identify the areas that require improvement in the agency's services.
  • It indicates the level of satisfaction among customers, which is crucial for achieving higher customer retention rates.
  • CSat KPI benchmarking helps businesses stay ahead of their competitors.

KPI Disadvantages

  • CSat KPI may not be enough to provide a comprehensive understanding of the customer experience.
  • The satisfaction level varies from customer to customer, making it challenging to measure using a single KPI.
  • It may not be possible to identify the specific reasons behind customer satisfaction or dissatisfaction using this KPI alone.

KPI Industry Benchmarks

According to industry benchmarks, the average customer satisfaction level for mobile development agencies is around 85-90%.

Tips & Tricks:

  • Conduct regular surveys to understand customer needs and preferences.
  • Implement strategies to improve customer service and interaction.
  • Pay attention to feedback and work on the areas that need improvement.


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Number of applications developed and launched

Definition

The number of applications developed and launched is a critical KPI metric for mobile development agencies. It measures the quantity of applications developed and launched by the company over a specific period.

Use Case

Measuring this KPI helps mobile development agencies determine their productivity and the progress of their development projects. It also helps in evaluating the adoption rate of new applications.

How To Calculate KPI

To calculate the number of applications developed and launched, use the following formula:
Number of Applications Developed and Launched = Total number of applications developed and launched by the company in a specific period

Calculation Example

Suppose a mobile development agency developed and launched 25 applications in the first quarter of the year. The total number of applications developed and launched in this period would be 25.
Number of Applications Developed and Launched = 25

KPI Advantages

This KPI metric enables mobile development agencies to measure their productivity level and the efficiency of their development team. The metric helps them track the progress of their development projects and measure the success of their mobile applications.

KPI Disadvantages

The number of applications developed and launched KPI metric does not account for quality, performance, user experience, user satisfaction, and marketability of mobile applications.

KPI Industry Benchmarks

The average number of applications developed and launched by mobile development agencies differs by industry and company size. In the App Development Industry, the average number of applications developed and launched per year is 5 to 10 applications.

Tips and Tricks

  • Ensure that the KPI metric aligns with your business objectives and strategic goals.
  • Track application development frequency to help increase the number of applications developed and launched.
  • Use innovative project management tools to help with application development and launch processes.


Revenue generated from mobile application projects

As a mobile development agency, revenue generated from mobile application projects is one of the most important key performance indicators (KPIs) to track. This KPI measures the total amount of revenue generated from all mobile application projects.

Definition

Revenue generated from mobile application projects measures the total amount of revenue generated from all mobile application projects.

Use Case

This KPI is essential to track for mobile development agencies to ensure that their revenue streams remain healthy and sustainable. It helps in identifying which mobile application projects are generating the most revenue for the agency and which projects need more attention.

How To Calculate KPI

The formula for calculating revenue generated from mobile application projects is:

Total Revenue = (Number of mobile application projects) x (Average revenue per project)

Calculation Example

Suppose a mobile development agency has completed 50 mobile application projects in the past year, and the average revenue generated per project was $10,000. The total revenue generated from mobile application projects would be:

Total Revenue = (50) x ($10,000) = $500,000

KPI Advantages

  • Helps in identifying revenue sources
  • Allows for better assessment of profitability
  • Helps in measuring return on investment for projects

KPI Disadvantages

  • Does not account for expenses
  • May not accurately reflect the overall health of the agency
  • Can be affected by external factors such as the market and competition

KPI Industry Benchmarks

Industry benchmarks for revenue generated from mobile application projects vary depending on the size and scope of the mobile development agency. However, on average, mobile application projects generate anywhere between $50,000 to $500,000 in revenue per project.

Tips & Tricks

  • Consider evaluating the profitability of individual projects in addition to the overall KPI
  • Regularly review market trends and competition to adjust pricing and service offerings
  • Monitor the impact of external factors such as new technologies and regulations that may affect revenue streams


Number of returning clients

As a mobile development agency, one of the most important metrics to track is the number of returning clients. This metric is a direct reflection of your agency's ability to provide high-quality service and build strong relationships with clients.

Definition

The number of returning clients is the total number of clients who have worked with your agency on multiple projects or engagements.

Use Case

This KPI is a critical measure of your agency's long-term success. A high number of returning clients demonstrates client satisfaction and loyalty, which can help your agency win new business through referrals and positive reviews.

How To Calculate KPI

The formula for calculating the number of returning clients is:

Number of Returning Clients = Total Number of Clients - Number of New Clients

Calculation Example

Let's say your agency has worked with 50 clients total, and in the last quarter, you secured 20 new clients. Your calculation would look like this:

Number of Returning Clients = 50 - 20 = 30

In this example, your agency has 30 returning clients.

KPI Advantages

  • Client loyalty: A high number of returning clients indicates that your agency is building strong relationships with clients and providing high-quality service.
  • Business growth: Satisfied clients are more likely to give referrals and positive reviews, which can help your agency win new business.

KPI Disadvantages

  • May not reflect growth: A high number of returning clients does not necessarily mean your agency is experiencing growth. It could mean that you are losing new clients at a high rate.
  • All clients are not equal: The KPI treats all returning clients as equal, even if they are not all of the same value to your agency.

KPI Industry Benchmarks

Industry benchmarks for the number of returning clients can vary based on your agency's focus and target market. However, some estimates suggest that the average return rate for mobile development agencies is around 25% to 30%.

Tips & Tricks:

  • Regularly survey your returning clients to gauge their satisfaction and identify areas for improvement.
  • Track which clients are returning most frequently and focus on building strong relationships with these clients.
  • Consider providing loyalty programs or incentives to encourage clients to return.


Number of new clients acquired

Definition

The Number of New Clients Acquired KPI is a metric that tracks the number of new clients a mobile development agency acquires over a specific period.

Use Case

This KPI is essential for mobile development agencies as it helps them measure the effectiveness of their marketing and sales efforts. It helps them identify the channels that are generating the most leads and evaluate the success of their lead generation campaigns.

How To Calculate KPI

To calculate the Number of New Clients Acquired KPI, use the following formula:
(Number of new clients acquired / Total number of leads) * 100

Calculation Example

For example, if a mobile development agency acquires 50 new clients over a quarter and receives 500 leads during the same period, the Number of New Clients Acquired KPI would be:
(50 / 500) * 100 = 10%

KPI Advantages

  • The Number of New Clients Acquired KPI helps mobile development agencies evaluate the effectiveness of their marketing and sales campaigns.
  • It helps them identify the channels that are generating the most leads, allowing them to focus their efforts on those channels.
  • The KPI provides a straightforward way to measure the success of a mobile development agency's lead generation efforts.

KPI Disadvantages

  • The Number of New Clients Acquired KPI does not provide insight into the quality of the leads generated.
  • A mobile development agency can acquire a high number of new clients but still struggle with retaining those clients.

KPI Industry Benchmarks

According to industry benchmarks, a good Number of New Clients Acquired KPI for a mobile development agency is around 10-15%.

Tips & Tricks:

  • Utilize social media and content marketing to generate leads.
  • Make sure your website is optimized for lead generation.
  • Use lead magnets such as free trials or consultations to entice potential clients.


Average Time to Develop and Launch an Application

Definition

The average time to develop and launch an application is a KPI metric that measures the duration it takes for a mobile development agency to develop and launch a mobile application from scratch. This KPI metric helps mobile development agencies assess their operational efficiencies, project management prowess, and the quality of their deliverables.

Use Case

The average time to develop and launch an application KPI metric is useful for mobile development agencies to:

  • Evaluate their project timelines and identify inefficient processes that may result in project delays
  • Estimate project costs and budgetary constraints
  • Measure the quality of their mobile application deliverables and service offerings

How To Calculate KPI

To calculate the average time to develop and launch an application, mobile development agencies should follow this formula:

  • Add up the total hours expended for each project in a period, including development, testing, QA, project management, and client communications
  • Divide the total hours expended by the number of projects

For example, if a mobile development agency expends 600 hours of work over 12 mobile application projects, the average time to develop and launch an application would be 50 hours per project.

  • 600 total hours / 12 projects = 50 hours per project

KPI Advantages

The average time to develop and launch an application KPI metric provides mobile development agencies with many advantages, including:

  • Helping to identify inefficient processes and areas for improvement
  • Assisting in the allocation of budgetary resources and cost management
  • Providing valuable feedback to clients on project timeframes and deliverables
  • Supporting the evaluation of operational efficiencies and service offerings

KPI Disadvantages

Mobile development agencies should be aware of some drawbacks associated with the average time to develop and launch an application KPI metric, including:

  • Focusing too much on project timelines to the detriment of deliverable quality
  • Over-reliance on standardized project management tools and methodologies
  • The potential for inaccurate or incomplete data reporting

KPI Industry Benchmarks

Industry benchmarks for the average time to develop and launch an application KPI metric vary depending on the scope and complexity of projects. However, the following can serve as general industry benchmarks for mobile development agencies:

  • Small mobile applications: 4-6 weeks
  • Medium mobile applications: 8-12 weeks
  • Large mobile applications: 12-20 weeks

Tips and Tricks

  • Implement standardized project management tools to help manage projects effectively
  • Optimize your development and testing processes to improve project turnaround times
  • Track your progress consistently, and identify any disparities that may exist to make necessary adjustments


Percentage of applications meeting or exceeding client requirements

Definition

The Percentage of applications meeting or exceeding client requirements is a key performance metric that measures the rate of successful application deliveries. It serves as an indicator of the agency’s ability to meet the client’s demands and deliver solutions that comply with their requirements efficiently and effectively.

Use Case

The Percentage of applications meeting or exceeding client requirements KPI is essential for mobile development agencies as it helps to gauge their performance and expertise in delivering software solutions that align with the client’s needs. This metric is particularly important for agencies that offer custom application development for their clients.

How To Calculate KPI

To calculate the Percentage of applications meeting or exceeding client requirements, divide the number of applications meeting or exceeding the client’s requirements by the total number of applications delivered to the client and multiply by 100.

Percentage of applications meeting or exceeding client requirements = (Number of applications meeting/exceeding requirements / Total number of applications delivered) x 100

Calculation Example

If a mobile development agency delivered 50 applications to a client, and 45 of the applications met or exceeded their requirements, then the Percentage of applications meeting or exceeding client requirements would be calculated as follows:

Percentage of applications meeting or exceeding client requirements = (45 / 50) x 100 = 90%

KPI Advantages

  • Helps to measure the agency’s level of customer satisfaction by evaluating its ability to meet the client’s requirements.
  • Allows the agency to identify areas of improvement and work on delivering better solutions.
  • Provides insight into the agency’s performance and helps to identify strengths and weaknesses.

KPI Disadvantages

  • The Percentage of applications meeting or exceeding client requirements can be affected by factors outside of the agency’s control, such as the client’s changing requirements.
  • There may be a discrepancy between the client’s requirements and expectations that can distort the KPI.

KPI Industry Benchmarks

According to industry benchmarks, the Percentage of applications meeting or exceeding client requirements for mobile development agencies should be around 85-90%.

Tips & Tricks

  • Ensure that the client requirements are clearly defined and documented before starting the project.
  • Regularly communicate with the client throughout the project to ensure their requirements are being met.
  • Conduct regular quality assurance tests to ensure the delivered application meets the client’s requirements and functions as expected.


In conclusion, tracking KPIs is crucial for any mobile development agency striving for success in the dynamic app development industry. Customer satisfaction level and number of applications developed and launched are essential performance metrics to measure productivity, efficiency, and growth potential. Monitoring revenue generated from mobile application projects provides insights into the financial stability and profitability of an agency, while the number of returning clients and average time to develop and launch an application indicate reliability, consistency, and productivity efficiency. Finally, ensuring a high percentage of applications meeting or exceeding client requirements is essential to maintain a reputation for quality and cater to clients effectively. By tracking and evaluating these KPIs, mobile development agencies can optimize performance and remain competitive in the constantly evolving industry.

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