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User Engagement: Metrics to Use and Mistakes to Avoid

User engagement reveals the reputation your brand has in the marketplace. Though it seems like a pretty straightforward metric to measure, it is not as simplistic. In his blog article, Bernard Marr explains the parameters as well as discusses the common mistakes we make.

How to Leverage User Engagement Metrics

In simple terms, user engagement denotes how well customers interact with your products or services. A surge in the interaction level indicates that they prefer your services, and you have been able to meet their needs. Here are the user engagement metrics you must use:

DAU, WAU, and MAU: Daily active users (DAU), weekly active users (WAU), and monthly active users (MAU) are the metrics to measure user engagement. Every business will have its own definition for active users. Who would you call active—one that logs in every day or the one that visits campaign pages? Which activity would you count as active—online submissions or downloading a service catalog?

Compare the user engagement metrics to analyze how you are faring at retaining customers. It also helps determine the lifetime value of each user. Use the following formula for the DAU/MAU ratio:

DAU/MAU Ratio = No. of daily active users / No. of monthly active users

If the score is above 20 percent, you have satisfactory user engagement.

To maintain the same consistency, avoid the following mistakes:

Mistakes to Sidestep

  • Total count is not the ultimate measure of success as far as user engagement is involved. It does not diagnose product issues.
  • Setting up metrics that your competitors have is a futile effort. Every business is unique, so establish metrics that are specific to your business goals and vision.
  • Launching campaigns one after the other does not allow you to find out the real score of your user engagement. You will notice that 60 to 80 percent of new users have withdrawn their subscription within one week. Let the numbers settle before working on another tactic.
  • Regular visits do not necessarily indicate higher user engagement. Differentiate the real interactions from the casual ones. For instance, Airbnb users will visit other websites too to compare. The brand considers engagement to be when users choose their services over others.

To view the original article in full, click on the following link:

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