#ActiveUserImpact

Why are active users important?

From a business perspective, active users are important because they have the potential to generate revenue. An app needs active users to survive, so a healthy count of active users is positive.

Calculating an app’s number of active users over a period of time can also help assess the effectiveness of marketing campaigns. Spikes in active user counts that correlate with a push notification on a particular day, or a weekly offer, can be analyzed against like-for-like campaigns to assess performance.

Knowing active user numbers is also essential in calculating key metrics. Figures like retention rate rely on finding out whether users remain active over a period of time, and metrics like lifetime value (LTV) can’t be calculated without retention.

In sum, active user counts act both as a way of checking on the general health of an app and as a first step to calculating deeper and more informative metrics further down the line.

Monitoring active users provides numerous advantages for companies, encompassing several key areas. Firstly, it serves as a valuable tool for assessing the effectiveness of marketing campaigns. By observing an increase in active users during a campaign, it becomes evident that the ads yield positive results.