Monthly User Base Utilisation
Utilisation represents the percentage of users who performed some action on the platform out of those users who are considered not to have churned.
Question answered by the metric
How many users have been active among those who could have been active?
Steps to measure
- Count the unique users who are considered not to have churned during the given month.
- Count the unique users who performed at least one action on the platform during the given month.
- Divide the number of active users by the number of users who have not left the community.
Interpretation
We can look at utilization as a metric that correlates with frequency of users taking actions during their tenure in the community. If each user performed at least one action during the reporting period (month in our case) during their tenure, the utilization would be 100%. Therefore, it is important to analyze utilization together with the lifetime in the community. As a result, a high utilization value can indicate a high interest in the community among users, or a short lifetime. We should aim for a world where we have high utilization and high tenure at the same time.