What is User Engagement Rate, and how do you calculate it?
In short – Measure of user interaction with the marketplace features. A key marketplace metrics you should track.
User Engagement Rate Formula
User Engagement Rate = (Engaged Users ÷ Total Users) × 100%
User Engagement Rate assesses how actively users interact with various marketplace features such as wish lists, reviews, and social sharing.
Higher engagement can lead to increased loyalty and sales. This metric informs strategies to enhance user interaction and experience. This metric helps businesses understand key operational efficiencies, areas for improvement, and strategic opportunities to drive growth and user engagement. This metric provides deep insights into business performance, helping to identify trends, optimize strategies, and improve overall marketplace efficiency.
How can you find your User Engagement Rate?
You should generally be able to calculate your User Engagement Rate with tools you already posess. If that's not the case, signing up for an analytics tool may make sense.
Among others, twosided is one of the tools you could consider. Out-of-the-box, you'll get over two dozens marketplace KPIs and detailed tracking for your supply, demand and other factors that determine marketplace health.
Explore other metrics
Net Promoter Score (NPS)
A measure of customer loyalty and satisfaction based on user feedback.
Average Order Value (AOV)
The average value of orders placed on the platform.
Supplier Lifetime Value (SLV)
The projected revenue generated by a supplier over their tenure on the platform.
Repeat Purchase Ratio
The proportion of customers who make repeat purchases over a given period.
Customer Lifetime Value (CLV)
The projected revenue a customer will generate during their relationship with the business.