Measuring your active users the right way requires to take 3 simple concepts.
1. Define what "active" means for your product
It’s important to determine what action the user must take in your business to be “active”. It’s not the same for every business.
Is an active user one who logs on? Is it someone who takes a more specific action with your product such as reading an article?
Usually it’s better to measure a more valuable action like "Read an article" or "Share Content". Of course this can be a mix of actions. June enables you to do that by adding multiple events or page views with a "OR" condition.
2. Understand the ideal frequency of usage of your product
The second question is whether you should at your Daily, Weekly or Monthly active users.
To answer this question you need to figure out what makes the most sense for your business.
3. Understand what matter most: a user or a company
The last question you should ask yourself is whether your business makes more sense at a user or company level.
If your product is multiplayer - common for B2B - then it traditionally makes sense to check the activity of your users at a company level. For Consumer App it makes sense to track active users at user level instead.
When measuring engagement for bottom-up SaaS startups you need to make one further adjustment.
Remove free trials and freemium users
Remove free trials and freemium users to understand Customer Engagement as opposed to User Engagement. For bottom-up SaaS products, which allow anyone to sign up, this is an important distinction.
Free users who sign up to explore the site but don’t become paying customers will increase MAUs but generate few daily visits, bringing down the average.
In other words Free users can create a lot of noise in the data.
Unlike consumer engagement, SaaS engagement needs to adjust for times when users aren’t working. June allows you to remove week end in the settings in one-click.
This will prevent you from seeing graph such as this one 😉