GITNUX MARKETDATA REPORT 2023

Essential User Growth Metrics

Highlights: The Most Important User Growth Metrics

  • 1. Daily Active Users (DAU)
  • 2. Monthly Active Users (MAU)
  • 3. User Churn Rate
  • 4. User Retention Rate
  • 5. User Acquisition Cost (CAC)
  • 6. User Lifetime Value (LTV)
  • 7. Virality Coefficient
  • 8. Organic vs. Paid Users
  • 9. Net Promoter Score (NPS)
  • 10. Activation Rate
  • 11. User Stickiness
  • 12. Time to First Key Action
  • 13. User Session Duration

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User Growth Metrics: Our Guide

Unlocking the potential of your business lies in understanding your user growth metrics. In our recent study, we delve deep into the most essential parameters that can significantly impact the growth trajectory of your user base. This blog post will guide you through these important metrics, providing insight and analysis on how to effectively measure and utilize them for your business growth.

Daily Active Users (DAU) - The number of unique users who engage with a product or service daily. This metric helps measure the daily user engagement and overall growth.

Daily Active Users (DAU)

The number of unique users who engage with a product or service daily. This metric helps measure the daily user engagement and overall growth.

Monthly Active Users (MAU) - The number of unique users who engage with a product or service monthly. This metric helps track user engagement over a more extended period.

Monthly Active Users (MAU)

The number of unique users who engage with a product or service monthly. This metric helps track user engagement over a more extended period.

User Churn Rate - The percentage of users who stop using a product or service during a specific time frame. A lower churn rate indicates better user retention.

User Churn Rate

The percentage of users who stop using a product or service during a specific time frame. A lower churn rate indicates better user retention.

User Retention Rate - The percentage of users who continue using a product or service over time. Retention rate helps measure the long-term engagement and satisfaction of users.

User Retention Rate

The percentage of users who continue using a product or service over time. Retention rate helps measure the long-term engagement and satisfaction of users.

User Acquisition Cost (CAC) - The average expense to acquire a new user, including advertising, marketing, sales, and support costs. Lower CAC indicates a more cost-effective user growth strategy.

User Acquisition Cost (CAC)

The average expense to acquire a new user, including advertising, marketing, sales, and support costs. Lower CAC indicates a more cost-effective user growth strategy.

User Lifetime Value (LTV) - The total revenue generated from a user during their lifetime use of a product or service. Higher LTV means higher profitability and better user growth potential.

User Lifetime Value (LTV)

The total revenue generated from a user during their lifetime use of a product or service. Higher LTV means higher profitability and better user growth potential.

Virality Coefficient - The average number of new users that each existing user generates through referrals, word-of-mouth, or sharing. A higher virality coefficient indicates a more efficient growth strategy.

Virality Coefficient

The average number of new users that each existing user generates through referrals, word-of-mouth, or sharing. A higher virality coefficient indicates a more efficient growth strategy.

Organic Vs. Paid Users - Organic growth percentage shows users from unpaid sources versus paid advertising, indicating reliance on organic channels.

Organic Vs. Paid Users

Organic growth percentage shows users from unpaid sources versus paid advertising, indicating reliance on organic channels.

Net Promoter Score (NPS) - A measure of users’ likelihood to recommend a product or service to friends or colleagues. A high NPS indicates strong user satisfaction and can lead to more organic growth.

Net Promoter Score (NPS)

A measure of users’ likelihood to recommend a product or service to friends or colleagues. A high NPS indicates strong user satisfaction and can lead to more organic growth.

Activation Rate - Activation rate is the percentage of new users completing specific actions, reflecting their engagement and initial user experience.

Activation Rate

Activation rate is the percentage of new users completing specific actions, reflecting their engagement and initial user experience.

User Stickiness - The ratio of daily active users to monthly active users (DAU/ MAU). A higher stickiness ratio indicates strong user engagement and loyalty.

User Stickiness

The ratio of daily active users to monthly active users (DAU/ MAU). A higher stickiness ratio indicates strong user engagement and loyalty.

Time To First Key Action - Time to significant action is the average time for new users to complete important tasks, gauging onboarding effectiveness.

Time To First Key Action

Time to significant action is the average time for new users to complete important tasks, gauging onboarding effectiveness.

User Session Duration - The average time a user spends on your website, app, or platform during a single visit. This helps measure user engagement and the overall value offered by the product.

User Session Duration

The average time a user spends on your website, app, or platform during a single visit. This helps measure user engagement and the overall value offered by the product.

Frequently Asked Questions

User growth metrics are a set of data points, statistics, and measurements used to evaluate and track the growth, engagement, and retention of users or customers in a business, product, or service.
User growth metrics are crucial for businesses, as they provide insights into the effectiveness of marketing strategies, product features, and customer satisfaction. They help businesses identify areas of improvement, make better-informed decisions, and allocate resources optimally for sustained growth.
Some vital user growth metrics include 1. Monthly Active Users (MAU) 2. Daily Active Users (DAU) 3. Customer Acquisition Cost (CAC) 4. Churn Rate 5. User Retention and Engagement Rates.
User Retention Rate (URR) is calculated by dividing the number of users retained (customers who return to use the product or service after the initial trial or purchase) by the total number of users acquired during a specific period (e.g., a month or a quarter) and multiplying the result by 100 to get the percentage value.
User growth rate refers to the percentage increase in the number of users over a specific period. This growth can result from new user acquisition and referrals from existing users. On the other hand, user engagement rate measures the level of interaction and activity users exhibit with the product or service, indicating how valuable, interesting, or enjoyable the users find it. Both metrics provide essential insights but focus on different aspects of a business’s performance.
How we write these articles

We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.

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