Have you ever downloaded an app, used it once, and then relegated it to the app graveyard on your phone? This happens to millions of apps every day. But what separates the ones that thrive from those that fizzle out? The answer lies in a metric crucial for any app's success: mobile app engagement. In this blog, we'll crack the code on engagement, explaining what it is, why it matters, and how to measure it. So, buckle up and get ready to transform your app from a forgotten download to a user favorite.
What is mobile app engagement?
Mobile app engagement is a way to measure how much users like and use your app. It's not just about how often they open it, but also how deeply they interact with different features and how valuable they find the overall experience.
Think of it like this: Imagine your app is a store. Engagement tells you if people are just browsing occasionally (low engagement) or actively looking around, trying things on, and making purchases (high engagement).
We measure engagement by looking at several things, like how often users open the app (session frequency), how long they stay each time (session interval), and whether they complete important actions within the app (conversion rate).
Different teams use this information differently. Marketers use it to see how effective their campaigns are at attracting valuable users. Product teams use it to understand how users navigate the app and identify areas for improving user experience.
What is a good app engagement rate?
A good app engagement rate depends on several factors like the industry you are in and the context of the app's utility. But if you are looking for a broad benchmark, an app engagement rate between 1% and 5% is considered good. This means that out of every 100 users, 1 to 5 are actively interacting with the app in a meaningful way.
Factors affecting engagement rate:
01.
App category
Different app categories have varying user behavior patterns. Social media apps might see higher engagement rates (think daily active users) compared to productivity apps used less frequently.
02.
App functionality
The core purpose of your app also plays a role. An e-commerce app aiming for frequent purchases might target a higher conversion rate as a measure of engagement compared to a news app where daily reading sessions might be more important.
Instead of a single, perfect engagement rate, it's more valuable to track your app's engagement over time and strive for continuous improvement. Segment your user base and compare the goal completion rate of different segments to define what "good" engagement looks like for each segment.
Why is app engagement important?
In a world where the app market is oversaturated, having an app with high user engagement can set your business apart. High engagement directly translates to higher user retention rates, which means more revenue for your business in the long run. Here are some more reasons why app engagement is crucial.
1. Increased user retention
App engagement directly influences user retention, acting as a mirror to a user's satisfaction with your app. When users are highly engaged, it means they find the app valuable. This translates to a higher likelihood of them continuing to use it in the long run.
But the benefits extend beyond just keeping users coming back. High app engagement also means high usage, this allows businesses to gather valuable data about user behaviors and preferences. This data is a goldmine that can be used to personalize the experience for individual users.
Imagine catering content and recommendations specifically to each user's needs. This level of personalization further increases user satisfaction, solidifying their long-term engagement with your app.
In essence, optimizing for high user engagement creates a virtuous cycle: satisfied users become loyal users, and loyal users generate valuable data that fuels further app improvements and even higher satisfaction.
2. Improved loyalty and advocacy
A loyal user base is incredibly valuable for any app. Not only do loyal users continue to use your app over extended periods, but they also represent a lower churn risk, meaning they're less likely to switch to a competitor. Loyal users are also more likely to engage in repeat transactions or make in-app purchases, thus increasing the app's revenue.
Moreover, loyalty often leads to advocacy. Engaged, satisfied users are more likely to recommend the app to their friends, family, and social connections. This word-of-mouth marketing is powerful and compelling because it's based on the genuine, positive experiences of users.
It provides social proof, which can significantly influence the decision-making process of potential users. In addition, users who become advocates for your app leave positive reviews and high ratings on app stores, which can boost your app's reputation, improve its ranking in search results, and attract more users.
3. Monetization opportunities
Apps with high engagement levels not only boast loyal users, but they also hold a significant advantage when it comes to monetization.
Highly engaged users spend more time within the app, increasing the number of impressions for ads or sponsored content. This translates to a more attractive platform for potential advertisers.
They are also more receptive to in-app purchases or premium features because they understand the value the app provides. They're already invested and see the additional features as an extension of their positive experience.
Subscriptions are another powerful tool for app monetization, but their effectiveness hinges on one key factor: ongoing user value. Engaged users who find consistent value in your app are more likely to subscribe for its services or premium features. They've already experienced the benefits and are willing to invest for continued access or enhanced functionality.
4. Satisfied users
User satisfaction is a critical factor in the success of any app. When users find an app engaging, it often means that the app is meeting their needs effectively and providing a positive and enjoyable user experience.
Engaging apps are typically intuitive, easy to use, and provide value to the user, whether that's through entertainment, productivity enhancement, or solving a specific problem. They are generally more user-friendly and focus on a smooth, seamless user experience. When an app is user-friendly, it naturally enhances the user's satisfaction.
How to measure app engagement?
It's important to understand that app engagement is not determined by a single metric. Rather, it's the collective analysis of several key metrics that paint a comprehensive picture of how users interact with your app and the value they derive from it. These critical metrics include
01.
Daily Active Users (DAUs)
This metric tells you how many unique users interact with your app or website on a given day.
02.
Monthly Active Users (MAUs)
This metric tracks the total number of unique users who interact with your platform within a month-long period. It provides a broader picture of your user base and helps understand overall reach.
03.
Session length
Measures the average amount of time users spend actively engaged with your platform per session (visit).
04.
Average Revenue Per User (ARPU)
It calculates the average amount of revenue generated from each user over a specific period (often monthly).
05.
Churn rate
This metric tracks the percentage of users who stop using your service over a specific period.
06.
User reviews and ratings
These qualitative measures provide valuable insights into user satisfaction. Positive reviews and high ratings indicate a well-received product or service, while negative feedback highlights areas needing improvement.
Most of these metrics are readily available "out of the box" within analytics tools. This means you don't need to set up complex custom configurations to track and monitor them.
Best app analytics tools to use for measuring app engagement
1. Google Analytics
Google Analytics is a free web analytics service from Google that helps you understand how people find and interact with your mobile and web applications. It tracks traffic, user behavior, and conversions, providing valuable insights to improve your marketing ROI and overall user experience.
Key features
01.
Google Analytics offers a robust suite of reports and visualizations that help you understand website traffic, user demographics, content performance, and more. You can see app data in clear charts and graphs, making it easy to identify trends and patterns.
02.
It helps you to define specific goals for your website, like purchases, signups, or downloads. Track how visitors move through your app towards those goals, allowing you to identify areas for improvement and optimize your conversion funnel.
03.
Traffic acquisition insights in GA helps you to uncover how users find your website. Google Analytics tracks traffic sources like organic search, social media, paid advertising, and referrals, helping you understand which marketing channels are most effective.
04.
Audience analysis in GA helps in gaining valuable insights into your website visitors. Google Analytics provides demographics, interests, and behavior data, allowing you to tailor your content and marketing strategies to your target audience.
2. Mixpanel
Mixpanel is known for its focus on funnels and user journeys. It excels at helping you visualize how users flow through your product, pinpointing where they drop off or convert. This makes it a great choice for optimizing signup processes, onboarding experiences, or any other critical path within your product. Additionally, Mixpanel offers a user-friendly interface for building dashboards and reports, making it easy to share insights with your team.
Key features
01.
Event-centric tracking
Mixpanel tracks every user action as an "event," allowing you to capture granular details about user interactions. From button clicks and feature usage to in-app purchases, you can understand the complete user journey.
02.
Customizable properties
Events aren't one-dimensional. Mixpanel lets you attach custom properties to each event, providing richer context. For instance, a "video watched" event can capture details like video category, watch time, and completion status.
03.
Funnel analysis
You can identify drop-off points in funnels, like a signup process or checkout flow, and understand where users abandon the journey.
3. PostHog
PostHog stands out as the only open-source option on this list. This means software teams have full control over their data and the flexibility to self-host the platform if desired.
PostHog's value extends beyond its open-source nature. It offers a comprehensive suite of features within a single platform, eliminating the need to juggle multiple tools for different aspects of product analysis.
Here's a list of all the things you can do with PostHog:
01.
Capture user interactions
Track key user actions within your app, like clicks, taps, page views, and custom events. This data paints a clear picture of how users navigate your software and helps identify areas for improvement.
02.
Dive deep with analytics
Analyze the captured user data with built-in dashboards and visualizations. Explore trends, identify user segments, and gain valuable insights into user behavior.
03.
Record user sessions
Gain a qualitative understanding of user behavior by watching recordings of their interactions within your app. This visual context complements the quantitative metrics for a holistic view.
04.
Run controlled experiments
Utilize A/B testing to compare different versions of your app interface or features. See which variations resonate better with users and optimize your app for better results.
05.
Deploy features with confidence
Manage the rollout of new features with feature flags. Target specific user groups for testing and iterate based on their feedback before a wider release.
4. Amplitude
Amplitude caters towards more technical product teams and offers advanced features for analyzing user behavior. It goes beyond basic funnels and allows you to segment users based on complex criteria and build detailed cohort analyses. This lets you uncover nuanced trends and understand how specific user groups interact with your product. Amplitude also integrates with a wider range of business intelligence tools, making it suitable for companies with a robust data infrastructure.
Key features of Amplitude includes
01.
Flexible event tracking
Amplitude allows for defining custom events for more granular control over the data.
02.
Powerful user segmentation
Segment users based on a wide range of criteria, including behavior, demographics, and device usage.
03.
Advanced cohort analysis
Analyze how specific user groups interact with your product over time to uncover deeper insights.
04.
Integrations
Integrates with a wider range of business intelligence tools for comprehensive data analysis.
5. Heap
Heap stands out for its automatic data capture. Unlike Mixpanel and Amplitude where you need to pre-define what user actions to track (events), Heap captures everything a user does. This lets you ask questions about your data later, even if you didn't anticipate needing that information initially. It's ideal for teams who want a comprehensive understanding of user behavior without getting bogged down in upfront setup.
Key features of Heap includes -
01.
Automatic event tracking
Heap's defining feature is capturing every user interaction by default. No need to pre-define events, allowing for flexible analysis later.
02.
Retroactive analysis
Since Heap stores all user actions, you can ask questions about past data even if you weren't tracking those specific events initially.
03.
Data science integration
Heap utilizes data science to identify potential friction points in the user journey based on the captured data.
04.
Session replay
Watch recordings of user sessions to pinpoint exact moments of conversion, frustration, or confusion.
Aarathy Sundaresan
Content Marketer , CometChat