Game App KPIs and Related Strategies: A Comprehensive Guide

I've compiled the main KPIs used when operating smartphone game apps.
Considering marketing and monetization, various KGIs can be envisioned, but I've focused on setting KPIs when KGI is defined as sales.
Therefore, cost-related KPIs such as various expenses and procurement costs are not included.
In practice, these cost-related items (e.g., Customer Acquisition Cost CAC) would likely be necessary.

When considering strategies for game operation, the primary focus is on implementing measures to change "user states."
Normally, a KPI tree would be created to link relationships, but this is widely introduced on other sites, so it feels a bit late to cover it.
Therefore, I've categorized KPIs by each user's state (see figure below). I'll explain each term using the figure as a reference.

What do KGI and KPI mean?

KGI and KPI will also be briefly summarized.

KGI

Key Goal Indicator

It is a numerically expressed goal representing the outcome that should be achieved.
In Japanese, it's "重要目標達成指数" (Important Goal Achievement Index).
Items related to final goals such as profit, sales, and expenses are often set here.
KPIs are then set as numerical targets to achieve the KGI defined here.

KPI

Key Performance Indicators

These are correlative indicators of data, processes, and actions necessary for achieving the above KGI.
Perhaps it's easier to understand them as more concrete numerical targets.
In Japanese, it's "主要業績評価指標" (Key Performance Evaluation Indicators).
Setting only KGIs leaves it unclear what to do to achieve them, or whether the current project direction is correct.
By setting specific KPIs, the progress of the KGI can be measured by achieving the numerical targets of the KPIs.
The KPIs frequently used in smartphone game app operation are summarized in the figure above.

KPI Explanation Related to User Count

As these are the entry points to the app, the main numbers are those obtained from data provided by various services, rather than through calculation.
These serve as the most foundational metrics.

User Count

This is the number of accounts registered in the app.
If you consider it as the number of registrants directly, it's the total number of people who have registered since the service started.
Unless accounts are automatically deleted, this number will cumulatively increase.
It is further categorized into "New Users" and "Comeback Users."
In practice, KPIs are often set in even more detail, such as "Daily New Users" and "Monthly New Users."

Download Count

This is the number of times the app has been downloaded.

Store / Organic Traffic

The number of times the app has been downloaded after being searched for or introduced via app stores, etc.
This is traffic that has almost no connection to in-game measures.
Also, it's the number of inflows where the trigger for the search cannot be tracked.

Ad Traffic

This refers to the number of users who have flowed in from advertisements, such as in-app ads in other games or other affiliate programs.
Although there are a wide variety of ad types, this counts users acquired through advertising.
KPIs are often set separately for each advertising campaign.

Measures Related to Ad Traffic

In-Game AD

Affiliate

SNS Traffic

Traffic from SNS platforms like Facebook and Twitter.
Many games also run retweet campaigns on Twitter.
Furthermore, some apps implement measures to encourage users to register for the app's SNS after traffic inflow.

Measures Related to SNS Traffic

Retweet Campaign

Pre-registration Campaign

Discord Community

In-game currency/item distribution for SNS registration

KPI Explanation Related to Active Users

Active Users (AU)

This is a KPI for the number of users who have launched the app, including new and comeback users.
Basically, the number of active users is the same as DAU (Daily Active Users), which is the number of active users per day.
Similar to DAU, active users are further subdivided, and KPIs such as "Weekly Active Users" and "Monthly Active Users" are set.

Daily Active Users (DAU)

This is the number of users who have launched the app at least once within 24 hours.
It is a highly valued KPI because an increase in the number of actual app users leads to more opportunities for monetization through in-app purchases and ad views.

In-game Measures Related to DAU

Login Bonus

Daily Quests

X-day Retention Users

This is a particularly important KPI for game apps.
KPIs are set based on retention days, such as 3-day retention, 7-day retention, or 1-month retention.
Retained users are those who launch the app daily.
Users who are active every day tend to have higher satisfaction with the game and are less likely to churn.
Conversely, a decrease in retained login users seriously impacts DAU and in-app purchase revenue.
Most successful apps adopt a greater proportion of measures aimed at increasing retained users.

In-game Measures Related to X-day Retention Users

Consecutive Login Bonus

Weekly Quests

Add Reward Items

Limited-time In-game Currency/Item Distribution

Limited-time Reward Item Addition

X-times Login Users

This is the number of users who log in multiple times a day.
For game apps, there are often measures where rewards are obtained over time, so the number of user logins, time played, etc., are frequently measured as KPIs.

In-game Measures Related to X-times Login Users

Stamina System / Play Count Recovery System

Timed Events

Offline (AFK) Reward Acquisition

Cue Boxes

Retention Rate

It is generally measured over 30 days. It calculates how many times a single user accesses the app as an active user within a month.
DAU often uses the monthly average, doesn't it?
MAU (Monthly Active Users) is an abbreviation for Monthly Active Users.
Related KPIs, such as "Retention Rate," may also be set.
"Retention Rate" might often be the main focus.

KPI Explanation Related to Paying Users

Paying Users

This is the number of users who have actually made purchases.
It is often abbreviated as PU or PUU.
These are abbreviations for "Paid User" and "Paid Unique User," respectively.

In-game Measures Related to Paying Users

Beginner Purchase Pack

Feature Addition

Average Revenue Per Paid User (ARPPU)

It is abbreviated as ARPPU, standing for "Average Revenue Per Paid User."
Numerically, if this figure increases, the customer's average spend rises, which directly contributes to final sales, making it a highly valued KPI.
In terms of KPI items, an increase in both paying users and average spend per payer will lead to an increase in sales.

In-game Measures Related to Average Revenue Per Paid User

Step-up Purchases (e.g., Beginner Pack purchase → Intermediate Pack purchase → Premium Pack purchase)

VIP

Payer Conversion Rate

Generally, this calculates the percentage of active users who have made a purchase on a daily basis.
By observing the payer conversion rate, it becomes easier to compare in-game users with other projects.
Furthermore, within the same game, it can be used as an indicator to explore user trends by calculating the payer conversion rate for each product.

KPI Explanation Related to Advertising

Ad-related KPIs are becoming increasingly important for many apps in game monetization.
The nature of KPIs varies depending on the game, so this will be a brief introduction.
It is common to provide benefits to users for watching ads.
Additionally, ad revenue allows for sales generation even from non-paying users.

Ad View Count

This is the number of times users have viewed advertisements.

Ad Pricing

Ad pricing comes in various patterns.
Examples include:
"Ad cost per 1000 impressions (CPM: Cost Per Mille)"
"Cost Per Click"
and so on.

Average Revenue Per User (ARPU)

When considering advertising, Average Revenue Per User (ARPU) is also important in addition to Average Revenue Per Paid User (ARPPU).
It is abbreviated as ARPU, standing for "Average Revenue Per User."
KPIs are set by calculating the proportion of ad revenue to total sales, or by further segmenting it.
Specific measures focus on increasing ad view counts.