How to Track the Right KPIs for Your SaaS or Mobile App

If you run a SaaS or mobile app, you probably hear a lot about KPIs. Everyone says, “Track your KPIs!” But what does that mean? And how do you know if you’re tracking the right ones?

Let’s clear it up. Because tracking every shiny metric that shows up on your dashboard isn’t just overwhelming, it can slow you down. The trick is zeroing in on the numbers that help you grow.

What are KPIs and why do they matter for SaaS and mobile apps?

KPIs (Key Performance Indicators) are the core metrics that tell you how well your app or service is doing. Think of them as your business’s vital signs, things like user growth, revenue, and retention.

But here’s the catch: Not all metrics are KPIs. Some are just noise. If a metric doesn’t help you make a decision or show whether you’re making progress toward a goal, it’s probably a vanity metric.

What’s the difference between vanity metrics and real KPIs?

Vanity metrics look impressive, but don’t tell you much. Like having 10,000 downloads, great! But how many of those people stuck around?

A real KPI gives you insight. It tells you something actionable. For example, your 30-day retention rate shows if users find value in your product over time.

So if you’re wondering, “Which KPIs should I track for my app?” the answer is: the ones that actually reflect your business goalHow do you align KPIs with business goals?

Start by asking: What are we trying to achieve right now?

If you’re just launching, you might care most about user acquisition and early engagement. If you’re growing, retention and revenue become more important.

Here’s a simple breakdown:

• Early stage: Focus on sign-ups, activation, and engagement.
• Growth stage: Look at churn, retention, and customer lifetime value.
• Mature stage: Dig into revenue efficiency and user satisfaction.

Not every KPI matters at every stage. Your job is to match your metrics to your current priorities.

What are the most important KPI categories for SaaS and mobile apps?

Let’s break this into five key categories so it’s easier to digest:

1. User Acquisition Metrics: These help you understand how effectively you’re attracting new users.

• Sign-up rate – How many people are registering for your product?
• Cost per acquisition (CPA) – How much are you spending to get a new user?
• Conversion rate – How many visitors become users?

2. Engagement Metrics Once people sign up, are they sticking around and using the app?

• Daily or Monthly Active Users (DAU/MAU) – How often are people coming back?
• Session length – How long are users staying engaged?
• Feature usage – Are your core features being used?

3. Retention Metrics This tells you how well you keep users over time.

• Churn rate – How many users are you losing?
• Retention rate (Day 1, Day 7, Day 30) – How many users stick around over time?
• DAU/MAU ratio (aka Stickiness) – How consistently are people engaging?

4. Monetization Metrics: These show how well your app is generating revenue.

• Monthly Recurring Revenue (MRR) – How much predictable income are you generating?
• Customer Lifetime Value (CLV) – How much is each customer worth over time?
• Average Revenue per User (ARPU) – How much money are you making per user?

5. Operational & Support Metrics These reflect the experience you’re delivering.

• Time to resolve support tickets – Are you helping users quickly?
• Crash rate or error reports – Is your app stable?
• Net Promoter Score (NPS) – Would users recommend your app to others?

How do you pick the best KPIs for your product stage?

Don’t try to track everything. Seriously. That leads to dashboard fatigue.

Instead, pick a few key metrics based on your current goals. If you’re improving onboarding, focus on activation and early retention. If you’re growing revenue, track MRR and churn.

Ask yourself:

• What are we trying to improve?
• Which metric shows whether we’re doing that?
• Can we influence this number with our current resources?

Keep your KPI list short. Five to eight key metrics are usually enough.

What tools should you use to track KPIs for SaaS and mobile apps?

You’ve got options. Some tools are built for mobile apps, others for SaaS platforms. Here are a few to consider:

• Mixpanel or Amplitude: Great for product analytics and user behavior.
• Google Analytics (GA4): Works well for websites and some apps.
• Firebase: Popular for mobile app tracking.
• Tableau or Looker: Good for visualizing data in dashboards.
• Databox or Klipfolio: Makes KPI dashboards easy to build and share.

The key is consistency. Whatever tool you use, make sure your data is clean, updated, and easy for your team to understand.

How do you make KPIs actionable and not just numbers on a screen?

If your team sees a metric but doesn’t know what to do with it, it’s not useful.

Make every KPI part of a feedback loop. Set targets. Review them weekly or monthly. If something’s off, dig into why.

Also, make your KPIs visible. A dashboard in a shared Slack channel or team meeting slide helps everyone stay aligned.

What are some common mistakes to avoid when tracking KPIs?

Here are a few traps to watch for:

• Tracking too many things: It muddles the water and wastes time.
• Chasing metrics that don’t drive growth: Focus on what matters now.
• Misinterpreting the data: Correlation doesn’t always mean causation.
• Ignoring context: A dip in DAU could mean a bug—or a holiday weekend.

Keep your KPIs grounded in real business goals, and always ask, “So what?” when reviewing them.

Final thoughts: Tracking KPIs the smart way

Tracking the right KPIs isn’t about adding more data. It’s about focus.

Your job is to figure out what success looks like at this stage of your business and use KPIs to steer the ship. Check in regularly, adjust when needed, and don’t be afraid to drop a metric if it stops being useful.

Think of KPIs like a compass—not a map. They show you where you’re headed, but it’s up to you to navigate.

FAQ: Tracking KPIs for SaaS and Mobile Apps

Q: What are the best KPIs for a new mobile app? A: Focus on sign-up rate, Day 1 retention, and feature engagement to see if users are finding value early.

Q: How many KPIs should I track at once? A: Aim for 5–8 core KPIs that directly tie to your current goals.

Q: How often should I review KPIs? A: Weekly for fast-moving teams, monthly for longer-term trends.

Q: Can I use Google Analytics for mobile apps? A: You can, but Firebase or Mixpanel might give you deeper mobile-specific insights.

Q: What’s the difference between churn rate and retention rate? A: They’re opposites. Churn is the % of users who leave. Retention is who stays.