Most SaaS solutions are built on subscriptions. Their viability is determined by the number of customers willing to renew their membership. If a consumer is not engaged enough, they are likely to forget about your product amidst the tens of others they use daily (until they get a notification of automatic monthly payment).
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Assuming that the word “User Engagement” is self-explanatory, you’ll be amazed at how many definitions there are. Let’s avoid making things too complicated. We’ll go on to the details later and just assume it is self-explanatory for the time being.
User Engagement is more fragile than monthly revenue or subscriber count. It is more difficult to quantify, yet it has the same influence on product performance as other more “tangible” elements.
While certain SaaS indicators have clear, standardised criteria, User Engagement is variable, and each company must set its standards. Here is how several models of consumer involvement operate.
Some measurements could be useful for one product while completely useless for another, depending on the latter’s peculiarities. This list is a starting point for constructing your User Engagement monitoring system, not a full guide.
This would be an appropriate statistic for social media since mastering the art of stealing users’ time, and attention is essential for success. On the other hand, increased session time might indicate a complex UX design, not “an engaging application.”
Usage can be counted by the number of actions users take or by utilizing the frequency calculation mentioned above. The unique feature of this statistic is that it can produce many results. For example, you may assess the effectiveness of various features and determine which ones are more frequently utilized.
Maybe you’ll see that some of the features aren’t needed. Or perhaps you never use it as it’s buried deep in the menu? Or perhaps they only utilize features unrelated to the premium tier? Measuring the use of important features independently can provide several responses.
If your product is a music streaming service, the number of tracks added to playlists may be used to measure customer engagement. You decide your product’s “outcomes” by setting them yourself: quantity of files, messages, likes, and documents. Make sure it is a vanity metric directly tied to user interaction.
Those indicators that appear spectacular but don’t truly provide useful information about the firm are known as “Vanity Metrics,” according to Eric Ries.
According to Nielsen Norman Group, the total number of page views is a vanity statistic if we want to assess user engagement. It could happen as a result of your product becoming featured on a well-known news website, and frequently this measure has little to do with the team’s capabilities.
User Engagement may be boosted by strategic planning and bringing a personalised tone to every customer journey touchpoints. Lastly, instead of waiting for your consumers to reach you, take a proactive approach to user interaction.