Successful user acquisition requires deep understanding of key performance metrics. Let's break down what matters most.
Core Acquisition Metrics
Cost Per Install (CPI)
The amount you pay to acquire a single app install.
Formula: Total Ad Spend ÷ Total Installs
Benchmarks by vertical:
- Gaming: $1.50 – $4.00
- Finance: $3.00 – $8.00
- E-commerce: $2.00 – $5.00
Cost Per Action (CPA)
Cost to get a user to complete a specific action (registration, purchase, etc.)
Formula: Total Ad Spend ÷ Total Conversions
Lifetime Value (LTV)
Total revenue a user generates throughout their lifetime.
Formula: ARPU × Average Lifetime
Return on Ad Spend (ROAS)
Revenue generated per dollar spent on advertising.
Formula: Revenue ÷ Ad Spend. Target 3:1 or higher for sustainable growth.
Advanced Metrics
Retention Rate
Percentage of users who return after installation.
- Day 1 Retention: 35–40% (good)
- Day 7 Retention: 15–20% (good)
- Day 30 Retention: 8–12% (good)
Payback Period
Time required to recover acquisition costs. Target under 90 days for most verticals.
Incremental LTV
Additional value generated from acquired users vs. organic users.
Optimization Strategies
- Focus on LTV:CPA Ratio — Aim for 3:1 or higher; track by cohort and channel.
- Monitor Retention — Optimize onboarding flow and engage users early and often.
- Channel Performance — Track metrics by source and double down on best performers.
- Segment Analysis — Break down by geography, user demographics, and device type.
Common Pitfalls
- ❌ Optimizing for installs alone
- ❌ Ignoring retention metrics
- ❌ Not tracking post-install events
- ❌ Failing to segment data
- ❌ Short-term thinking on LTV
Best Practices
- ✅ Set up proper attribution
- ✅ Track cohort performance
- ✅ Monitor retention rates
- ✅ Calculate true LTV
- ✅ A/B test creatives and audiences
Gaintwall provides comprehensive tracking and reporting to help you understand and optimize every metric that matters to your user acquisition success.