Online businesses need to identify their customer base to understand the relationship between themselves and their clients. How do companies measure success? Why do businesses keep track of their performance? How often should companies even keep track of certain information? These are questions critical to a business’ survival. Key Performance Indicators (KPIs) allow companies to measure almost every facet of their respective businesses interactions. With this data, they can understand their performance relative to the marketplace.
For some companies and mobile apps driving app downloads is the KPI but for those companies that operate solely digitally, a central KPI measurement is the Monthly Active Users (MAU). A standard definition of the MAU is defined as the number of “unique” users over the course of 30 days. This performance indicator is commonly used by social networking sites, digital gaming platforms, e-commerce businesses, and mobile apps. MAU measurement allows digital services to know who is using their product and how they use that product.
An active user is not just a person that may randomly access a site/service. An active user is determined as an individual who has created an account through email or username to access a site or service.
There are also two types of active users. There are first time users and recurring users:
- A first time user is a new user who has accessed a site for the first time.
- A recurring user is a user that frequents the site. It is important to clarify data to this extent when you are trying to track performance.
Ultimately it is up to the site or service to distinguish who they believe is an active user. Traditional social networking services like Facebook and Twitter have both have differing definitions:
- Facebook defines a Monthly Active User as anyone that is a registered Facebook user, who has accessed the service through the website, messenger app, or mobile app at least one time in the last 30 days.
- Twitter employs a slightly more complicated approach than its competitor. You must follow a minimum of 30 accounts and be followed by a third of the number of accounts you follow to be considered an active user. To put that in simpler terms, if you are a registered user who follows 30 accounts, with at least ten followers, and uses the site at least one time in 30 days, you are considered an active Twitter user.
It is crucial to measure user activity on digital platforms when examining performance, especially with mobile app marketing. Calculating the metrics of Monthly Active User data is a practical industry practice. The proper manipulation of this data will help companies find the information they need to succeed.
If you need help tracking your audience’s habits, contact Colure.
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