What Does It Mean?

Product engagement is the observation of how your users are interacting with your product. Measuring product engagement means tracking any number of metrics around the frequency and depth of interactions between user and product over time. User Engagement - Software Dashboard A User Engagement Dashboard

Why Does it Matter?

Measuring peoples engagement with your product demonstrates where it is that people find value in your product. By understanding who your user base is, how they are using your product, and when they are using your product - you can answer the important question of why they are using your product, and thus, increase your stickiness to your user base. Understanding how users engage with your product is the key to identifying gaps and areas for improvement. By understanding engagement, you create essential visibility into how you can create more value.

How Do You Measure the KPI’s?

Engagement is not measured in a singular metric; it is a broader understanding of user behavior that can be observed through several KPIs. Product teams must define what engagement looks like for their products, and how these actions should be tracked. Some examples of common metrics used to measure engagement are:
  • Daily App Usage
  • Depth of usage per session
  • Number of actions per user
  • Number of screens per session
  • Time Spent on Each Screen
  • Visit duration
  • User Acquisition
User Retention

What Data Sources Would You Use to Measure the KPI?

The best data source to measure engagement will depend on your product, and what KPIs exactly you are measuring. Many businesses use event tracking, and integrations with usage analytics tools such as Google Analytics, as well as data analytics software

Give me an example…

Let’s pretend you are the founder of a WalrusLuv - a successful social media platform for walrus lovers. Your team has recently developed an app, and while your download number is high, your app retention is very low - there is a steep drop off of active users after day 1. To tackle this problem, you decide to perform a cohort analysis, which is a test on a subset of your users that have similar traits. The cohort you choose is a group that downloaded the app on the same date, and became inactive after day 1. When you look at the time these users spent on each screen, you see that a high percentage of people stalled on the payment screen in the sign-in funnel. You have identified a bottleneck and can now begin to test where to implement your paywall to improve conversion.

What Benchmarks/Indicators Should I Use?

You should always look for the best in class benchmarks for your KPI’s in your industry. This is critical as conversion rate, engagement times, and so on will vary widely pendant on your product type. You can start by measuring your current scores, analyzing which incremental change would yield the greatest business impact, and then focusing to improve these scores. More Product KPIs Start Free Trial