Metric | Description | Stages | Business Models |
---|---|---|---|
Monthly Active Users (MAU) | The number of unique users who engage with your product monthly. | All | Marketplace, Subscription-based, IoT, Aggregator |
Note: A common caveat here is your Active User definition. It differs from business to business. Some of them define Monthly Active User as a user who opened their app at least once that month. Others consider a user as Active only if they made a conversion (ex: purchase). | |||
Daily Active Users (DAU) | The number of unique users who engage with your product daily. | All | Ad-based |
Note: This is the core metric for ad-based businesses that they focus on heavily as it defines their revenue. | |||
Customer Lifetime Value (CLV) | The average revenue a business expects from a single customer during their lifetime. | Scaling, Established | All |
Note: CLV:CAC ratio should be around 1:4 or more for sustainable growth. As acquisition metrics, it makes sense to track it against different acquisition channels. | |||
Churn Rate | The percentage of active users who stopped using your product/service in a specified period of time. | Scaling, Established | All |
Reactivated Users | Users who begin to purchase, subscribe, or engage with your app again after a long inactive phase. | Established | All |
Note: It’s easier to reactivate such users instead of acquiring new ones because they demonstrated their interest in your product once, and you have their contact details. | |||
Average Session Duration | The average amount of time users spend on your website or in your app during one session. | Prototype, MVP | All |
Note: A vanity engagement metric that is available out of the box in many analytic tools. It can be useful to see user engagement at the early stages. | |||
Data Volume | The amount of data collected and available for use per period of time. | Prototype, MVP | IoT |
Note: A similar vanity metric for early-stage IoT businesses. | |||
Retention Rate | The percentage of users who use your app a certain number of days after their first engagement with the product. | MVP, Scaling, Established | All |
CRR = ((E-N)/S))*100. E = the number of customers you have at the end of the week/month/year or other duration. N = the number of new customers your business made a sale to or acquired in some other way during a given period. S = the number of customers you had at the start of the period. | |||
Average Session Duration | The average number of key actions taken per session or period of time. | Prototype, MVP | All |
Note: It may reflect the value you bring to your customers. Examples: Monthly Bookings, Daily Purchases, Daily Messages. | |||
Net Promoter Score (NPS) | A customer loyalty score is taken from asking customers how likely they are to recommend your product or service to others. | Established | All |
NPS = % promoters - % detractors. Promoters (score of 9 and 10), Detractors (score of 0 to 6, included). Note: Used to evaluate overall user satisfaction and receive feedback. |
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