Hello, everyone. Today, we’re talking about engagement metrics. Every startup needs their customers to be engaged with that product. If your customers aren’t using your product regularly, they’re likely to churn and that will stop your growth. Some examples of engagement metrics you might use are:

1: 5x7 number. This is the gold standard and an incredibly harsh metric for engagement. 5x7 is the number of people who used your service five out of the last seven days. So these are very engaged, perhaps completely reliant customers. They need your product.

2. Daily Active, 3+ days old. Another good one is daily active users who are more than three days old. Measuring the total users over the last 24 hours is a good engagement metric but it’s vulnerable to sign up or download spikes caused by press, app store featuring or similar events. So if we ignore the users until they’re at least three days old, we ignore those who only tried the service once, making it much more accurate.

3. Monthly Active. Lastly, a bad metric is monthly active users. A lot of companies use this, of all sizes, but counting someone as engaged who only uses your service once a month is not a good reflection of reliance. And this number can be artificially high for a long time. Even if customers are leaving your service.

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Pre-seed Investor. Email: ash@sterlingroad.com. B2B, US only. I work with founders for 3 months before investing. More info: http://SterlingRoad.com/process

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