Active users refer to the number of unique users who engage with an app or a website during a predefined period of time and is a metric designed to measure growth, churn, and product stickiness.
What is an active user?
As a marketer looking to encourage growth, or a product manager after maximizing retention, you not only need to know how often users access your app/website but understand the depth of their use and level of engagement.
In mobile marketing, an active user is a person who accesses an app for a given period of time. During this period each user is counted uniquely to provide an app developer with an accurate figure of how many people use an app, whether it be daily, weekly, or monthly.
Why are active users important?
From a business perspective, active users are important because they generate revenue. An app needs active users to survive, so a healthy count of active users is a positive sign of success.
Benefits of measuring active users
An increasing volume of active users is a good sign you’re doing something right.
Determining the number of your active users over time helps you to assess the effectiveness of your campaigns, and the customer experience your app delivers. It also ties into other key metrics; Lifetime value (LTV) can’t be calculated without knowing your retention rates, while retention rates rely on active users count.
In other words, your number of active users provides a basic measure of the general health of your app, and maintaining a finger on the pulse of your active users trends allows you to align their needs with your values.