What Are the Key Retention & Engagement Metrics for Consumer Apps?
For e-commerce apps, a transaction can serve as the threshold for being a retained user, and average revenue per retained user can serve as the other dimension of retention: the depth of engagement.
For non-transactional consumer apps, we need a similar framework of measuring retention and engagement. Let's explore.
Standard Retention Metrics:
Retention metrics such as D-1, D-7, D-30, and W-1 retention measure the percentage of users who return to the app within specific time frames after their initial use.
For example, a fitness app might observe that 60% of new users return within the first day (D-1), but only 15% remain active by Day 30 (D-30). This indicates how well the app retains users in the short and longer term.
Engagement as a Retention Dimension:
In consumer apps, engagement depth is crucial. For instance, considering a user retained as an active user just because they opened an app once in a month might not truly reflect their engagement level.
Metrics such as session length, interaction per visit, or completion of key actions (like completing a workout in a fitness app) provide a fuller picture of user retention.
DAU/MAU Ratio and Its Implications:
The DAU/MAU ratio, or Stickiness Ratio, measures how often users engage with the app within a month.
For instance, if a social media app has 10,000 daily active users and 20,000 monthly active users, the DAU/MAU ratio is 50%, indicating a high frequency of user return and engagement. This ratio helps businesses understand the compelling nature of their app's content and functionality.
Takeaway:
Evaluating user retention and engagement through metrics like D-1, D-7, D-30 retention, and the DAU/MAU ratio provides essential insights for consumer app busineeses. These metrics not only reveal how frequently users return but also how interactively they engage with the app.
Effective use of these metrics can significantly impact strategic decisions, driving enhancements in user experience and app value.