Product metrics - part 5 - Engagement Metrics



Engagement Metrics

1. Daily Active Users (DAU)

Definition: Number of unique users who engage with the product daily.

Examples:

  • Social Media App: 50,000 users log in daily.
  • News App: 15,000 people read articles each day.
  • Stock Trading Platform: 8,000 traders place at least one order daily.

2. Monthly Active Users (MAU)

Definition: Number of unique users who engage at least once in a month.

Examples:

  • E-learning Portal: 1,00,000 unique students logged in during the month.
  • Gaming App: 3 lakh players active in the last 30 days.
  • Mental Health App: 12,000 patients used chat/counseling features this month.

3. DAU/MAU Ratio

Definition: Measures stickiness — how often monthly users return daily.
Formula:
DAU / MAU

Examples:

  • Social App: DAU = 50,000, MAU = 2,00,000 →
    Stickiness = 0.25 or 25%
  • Fintech App: DAU = 5,000, MAU = 50,000 → 10%
  • Fitness App: DAU = 10,000, MAU = 40,000 → 25%

4. Session Length

Definition: Average duration a user spends per session.
Formula:
Total Session Time / Number of Sessions

Examples:

  • Video Streaming App: Total 10,000 mins across 1,000 sessions →
    = 10 minutes/session
  • Online Retail: Avg. session time = 7 minutes.
  • Online Chess App: 15 minutes average per game session.

5. Session Frequency

Definition: How often a user returns in a given time frame.

Examples:

  • Banking App: Active users open the app 12 times/month on average.
  • Learning App: Users return for 5 sessions/week.
  • Telemedicine App: Patients open app twice a week on average.

6. Feature Adoption Rate

Definition: % of users actively using a specific feature.
Formula:
Feature Adoption = (Users of Feature / Total Users) × 100

Examples:

  • CRM: 3,000 of 10,000 users use automation workflows →
    = 30%
  • UPI App: 70% of users have enabled auto-pay.
  • Learning App: 2,000 of 5,000 use discussion forums → 40%.

7. Engaged Users

Definition: Users who use the product meaningfully in a period.
Criteria depends on product (e.g., time spent, key actions taken).

Examples:

  • News App: 20,000 users read 5+ articles weekly.
  • Fitness Tracker: 5,000 users hit daily step goals 5x/week.
  • EdTech: 8,000 users watched 3+ lessons per week.

8. Click-Through Rate (CTR)

Definition: % of users who click on a link/button/ad.
Formula:
CTR = (Clicks / Impressions) × 100

Examples:

  • Email Campaign: 500 clicks from 10,000 opens →
    = 5%
  • Banner in App: 300 of 8,000 impressions clicked → 3.75%
  • Product Tour CTA: 100 clicks from 1,000 visits → 10%


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