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.
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
Order Frequency
Average number of orders placed by a buyer within a specific period
Cross-Sell Rate
Percentage of transactions that include additional products or services
Supply-Demand Ratio
Ratio of available listings to active buyers
Listing Quality Score
A metric evaluating the quality of product listings based on predefined criteria
User Net Adds
Net increase in the number of users over a specific period