8 Metrics To Consider When Evaluating Your Minimum Viable Product

Though an MVP, or Minimum Viable Product, is developed with beneficial goals in mind, the reality is that not all MVPs end up successful. Thus, in determining whether the output of the MVP is good or bad, effective or ineffective, there must be a way for such output to be measured.

This is where having standardized metrics come into the picture. These metrics may differ for each sector or even for the type of MVP that is developed. However, in this article, the metrics that would be included are typical for the software and mobile app development industry.

Here are a few key metrics that could help determine and evaluate MVP success and effectiveness.

8 metrics to consider when evaluating your MVP

1. CAC — Client Acquisition Cost

By checking the CAC, companies will know how much it would cost to obtain a paying customer. The CAC enables companies to measure how effective their marketing strategies are. This may also help them evaluate if major or minor adjustments need to be done.

CAC = Amount spend on marketing channel / # of customers gained through channel

2. CLV — Client Lifetime Value

This metric emphasizes the value that a customer gives to the business for the duration that the customer stays as a customer. Checking this metric is important in determining the budget that should be allocated in order to gain new customers and keep existing ones.

CLV = Profit generated from the customer / Duration of app usage

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3. Churn Rate

Churn rate pertains to those users who have stopped using the app or who have removed the app from their device. The churn rate is a percentage and it can be calculated either or a weekly or monthly basis. In cases where there are paid and free users, the calculations must be done separately.

Churn rate = Num of churns per week or month / # of users at the start of week or month

4. ARPU — Average Revenue Per User

The ARPU pertains to the average revenue earned from each customer. In monitoring the ARPU, it is important to also check on the specific items or features that have the greatest number of purchases and the effectiveness of upselling efforts.

ARPU = Total revenue of the month / # of active users in the month

5. Download and Launch Rate

It is important to know how many people have downloaded and tried out the app. This could serve as concrete data regarding the app’s relevance to market needs. User Experience (UX) may affect this rate.

6. Number and percentage of active users

Not all users are active users. Thus, it is essential to know the percentage of users who are active. As this is done, plans can also be made in order to convert the passive ones into active users.

7. Number and percentage of paying users

If there is a paid option in your app, it is important to note the number of users who are willing to pay in order to avail of your app’s services. Their preferences, time spent using the app, and other details can also be noted. Checking this metric is important because there may also be free options in the market.

8. User Engagement

Any type of within-app interaction that users have is considered as user engagement. Observing this would help gauge the app’s current value, future value, and relevance. This may also help determine if improvements in the UX need to be made.

Image source: The Ultimate MVP Guidelines by ICTS Custom Software

No one wants to spend resources only to find out that these resources end up getting wasted. The same is true for MVP development as well. Companies do not decide to pursue MVP development with the intention of putting the MVP to waste. Thus, it is essential to not just execute the MVP development but to evaluate its effectiveness and execution.

Though MVP development may be a milestone in itself, it may not necessarily be an achievement. What matters would be how the MVP would be helpful in reaching the company’s goals.

To know more about MVP development, check out the Ultimate MVP Guidelines.



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A proficient software development boutique focuses on cutting-edge technologies and constant quality optimization!