What is User Net Adds, and how do you calculate it?
In short – Net increase in the number of users over a specific period. A key marketplace metrics you should track.
User Net Adds Formula
User Net Adds = New Users Acquired - Users Lost During the Period
User Net Adds represents the net change in the total number of users on the marketplace during a given period, accounting for new user acquisitions and user churn. It reflects the marketplace's ability to grow its user base sustainably.
Monitoring User Net Adds helps understand overall growth trends and the effectiveness of user acquisition and retention strategies. A positive net add indicates growth, while a negative one may signal issues that need addressing.
How can you find your User Net Adds?
You should generally be able to calculate your User Net Adds 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