Keeping users engaged is a critical part of running a successful micromobility operation. Here are 8 ways to track user engagement!
Everyone knows that:
- It’s easier to sell to existing users than new ones
- Repeat customers spend more at key times
- Happy users are more likely to recommend your service to others
For these reasons, engagement is a crucial part of running a profitable micromobility business. Without these insights, you won't be able to see which users are preparing to delete your app, or which ones are thinking of cancelling their subscriptions.
Therefore, it’s important to know just how engaged your users are.
What is engagement?
Engagement, in a general context, is how often (and for how long) your users are using your service.
The above pyramid shows the progression of users from prospects to ambassadors. A successful business keeps users engaged to build loyalty and stickiness to their product or service.
But it’s more than that. It’s about building a community and, ultimately, the goal is to not sell a service, but to sell an experience.
“Uber doesn’t sell a service, it offers experience and sells a mindset. It has translated itself into a brand that stands for opportunities and promotes ambitions. Their content talks about how much of a change Uber has brought about in our lives”.
Ways to track engagement
In general, it is usually measured by the frequency at which users return, and how much they spend (what subscription level, average shopping cart size etc.). There are several ways to track engagement in micromobility. Here are some examples:
The average number of trips per user will give you a good idea of the frequency at which your users choose your service.
The most common time period to look at is per week, since daily ridership can vary considerably and may not give you valuable insight. Compare this data with the previous week and, of course, the week of the year before (to see your annual progression).
- Trips per week: 2.35
- Trips per week (Year-1): 1.93
A trips/user/day calculation will tell you how many of your users are commuters. The closer you are to 2, the more commuters you have in your user base.
P.S. You can also do the calculation with trips/active user (defined as a user that has taken a trip in the past month or 6 weeks, for example)!
Understanding how many of your users use your service week after week (or month after month) is an important indication of your ability to retain them.
Identifying how many of your users are coming back regularly (from one week to the next) is a good indication of how attached your users are to your product and for how many of them your service is becoming a habit to use.
P.S. You can also cross reference this data with your subscription holders to see what percentage of your subscribers are not returning users. Unengaged subscribers are more likely to cancel their subscription.
Returning users % (compared to previous time period)
By comparing your ‘returning users’ to the previous time period (as a percentage, of course) - especially over a month or a quarter - you can track long-term engagement. This is important when it comes to understanding when (after how long) your users stop using your service.
Returning users without incentives
It’s important to know how many of your users are organically repeat users, and what percentage of them are only pushed to take a trip because of a discount.
Number of returning users that take trips with no discount / only discounted trips
Bear in mind...
Customers who receive a discount either start to expect a discount every time or wait until a discount exists to make another purchase. Instead, you must find sustainable ways to keep your users engaged.
New users %
New accounts to new users %
A million new sign ups or accounts created means close to nothing if none of them make a trip.
Engagement of new users can be tracked by finding the percentage of new users that complete a trip in the first 24 hours after creating an account.
New users returning
What is your drop-off rate? That is to say, how many users will take just one trip and stop? To understand how quickly your users adopt your service, you can look at the average number of rides taken by users in the week after their first trip.
A high number here would suggest that loyalty marketing is strong, and that your service provides a great customer experience. A low number here may suggest that your service is not ‘sticky’ enough, and you should consider incentivising your users to take more trips in these crucial first few days.
After a certain number of weeks of inactivity, you might consider a certain number of users to be lost or to have ‘churned’. However, some of them will come back. The question is, what is the value of these ‘reactivated’ users?
After having defined what period of time constitutes a ‘deactivated user’ you can calculate the % that return within, for example, 3 months of inactivity. This could give you an indication of the effectiveness of your marketing campaigns to reactivate users.
You can also run some analysis on the effectiveness of your reactivation campaigns. For example, you can ask: ‘what percentage of ‘lost’ users made a trip 48 hours after one of our reactivation campaigns?’.
Net promoter score (NPS)
Net promoter score tells you how likely your users are to recommend your service to a friend.
You can find your NPS by subtracting the percentage of customers who are detractors from the percentage of promoters, which will leave you with a score between -100 and 100.
Check out this NPS Calculator
Any NPS score above 0 is considered ‘good’. It means that your audience is more loyal than not. Anything above 20 is considered ‘favourable’, whilst Bain & Co considers that above 50 is excellent, and above 80 is world class.
Lifetime value (LTV)
LTV is the monetary value of a relationship with a user. It is an important metric because it helps companies focus on the long-term value of their customers, rather than the short-term gain. In general, this is something that micromobility companies, and customer-centric startups in general, are very good at.
For a full LTV calculation, check out our article on unit economics.
This can be calculated in several ways.
What do you consider to be a churned user? Is it a user that deletes the app, doesn’t take a ride for X weeks, or other?
To work out your monthly churn, divide the lifetime of your customer in months by 1.
Monthly churn (%) = 1 / LTV in months
Divide the total number of churned users by the number of users you had on the first day of the period.
Churn rate (%) = Churned users / Initial users (first day of the time period)
Here are more ways to calculate churn rate.
It’s worth noting that...
These calculations must be taken with a pinch of salt because, as is the case with micromobility, users can come back at any moment. A user can be dormant for 3 months and then take a ride twice a day for a week - there are so many variables. What’s important is that these calculations are used as the indicators of performance that lay the foundations for optimisation.
Now that you know just how engaged your users are, you're ready to use this information to devise ways to optimize your retention efforts...