It has been argued that as a SaaS metric, active users leaves something to be desired.
It’s easy to measure and it is cause for celebration when it surges, but it only scratches the surface of what you stand to learn from your users.
At a minimum, it doesn’t give any indication of how successful your marketing campaigns are at attracting new users.
Because of this, you’re missing out on a prime opportunity to learn from your users and implement strategies that are meaningful to them and keep them engaged.
So, having said that, how should you analyze active users to get to the heart of what users need and what you can do for them?
Here we take a deep dive into user analysis strategies to measure who’s downloading your app, how they’re using it or whether they’re sticking around.
What does active user mean?
Daily active users (DAU) refers to users who engage with your app on a daily basis.
You can measure this for longer periods such as weeks (weekly active users or WAU) and months (monthly active users or MAU).
If you have a messaging app, DAU measures the number of users engaging with your service daily.
What DAU doesn’t tell you is who’s active in your app.
There’s no insight into whether you’re engaging your target audience, you just know that people are interacting with it.
Without knowing who your users are, it’s difficult to improve your product or position relevant marketing campaigns.
To start building user profiles, install software on your website or app that compiles user profiles when they submit their email address.
A tool like Clearbit provides enriched data— name, location, mini bio— that you then collect and feed through an app like Segment that sends it to an analytics platform like Amplitude for review and interpretation.