The hottest topic over the past year was finding the holy grail of the subscription business. Many leading media companies have proven that the key user revenue driver is engagement. There are many ways to calculate this behavioral metric, and strangely, the most popular still seem to be "MAU" and "DAU" introduced years ago by Facebook. However, they’re not too actionable.
We, at Deep BI (inspired by the Financial Times success, which also promotes this way of measurement) recommend a different approach: the RFV engagement score - which is a combination of Recency, Frequency and (content consumption) Volume metrics.
Here’s why. First, a single score is like the North Star - easy to follow, easy to compare and easy to use. Second, every part of the combined RFV score tells us something we can react to actionably:
Leveraging our powerful data streaming and analytics technology, we have just released RFV metrics on the Deep BI platform. Our system calculates, in real-time, the engagement scores each time user interacts with a digital product (app, service, website etc.), and augments that interaction with current engagement metrics.
Then these scores can be used to:
Below are the main metrics tracked, which can give a good overview of the RFV score, as well as more in-depth insights related to it:
1. Global, average RFV scores
2. Engagement segments vs. subscribers
3. Number of engaged users over time
4. Engaged User Segments and those at Risk of Churning
5. The most attractive content categories for engaged users
6. Days of the week with the most engaged users
7. Cities with the biggest number of engaged users
The application of these engagement scores is the way to grow a paying, loyal user base. Some applications include re-engagement strategies using newsletters, push notifications, or ads, or even product improvement and a better recommendation system, among other methods.