Percentage of Engaged Buyers
What is Percentage of Engaged Buyers?
This metrics calculates the proportion of engaged buyers. No two marketplaces are the same, so the definition of engagement may differ based on your business needs and specificity.
How to calculate Percentage of Engaged Buyers?
For this calculation, engaged users is calculated as someone who has made at least one purchase and searched for something in the last 30 days. If there are any other circumstances which make your marketplace unique, tweak the definition accordingly and use the following formula:
(#) of engaged buyers\ / (#) of buyers = (%) Percentage of Engaged Buyers
The most successful marketplaces have an engaged user base, which is great for attracting new sellers and increasing revenue. Therefore, looking deeper than tracking the buyer growth rate is beneficial for addressing early signs of business uncertainty.
Focusing on the percentage of engaged buyers alone can prevent you from noticing other threats to your business, such as a decreasing number of total buyers or a decreasing listing conversion rate. Remember key metrics for an online marketplaces fall into three categories–buyer activity, seller activity and revenue–so choose the right mix to get an overview of your business performance.