How is your product performing? That’s the question our Benchmarking report, aims to answer. The report highlights nine KPIs that product teams commonly use to measure the success of a feature or product, drawing on data from 2,500 Pendo customers.
In terms of user growth, we found that regardless of industry, company size, or region, Monthly Active Users (MAU) grow by an average of 3% over six months. For example, products with 1,000 users tend to add 30 new users every month.
Additionally, the report revealed that the top 10% of products are seeing MAUs grow by 54% over six months, which is 18 times faster than the average. On average, Manufacturing (5%) and Consumer Goods (7%) are adding the most active users. Manufacturing may have fallen behind the digital transformation curve prior to 2020, and their legacy processes saw major improvements during the pandemic’s digital acceleration.
On the flip side, Media (-4%) and Government (-5%) are losing the most active users. Media is a competitive industry, with new players entering the market every week.
Companies with more than 2,500 employees have higher MAU growth, on average. Though large companies may already operate within a saturated market, they also have more resources to acquire new users—via marketing, sales, and growth teams. Bigger budgets, brand recognition, and a drumbeat of new features all uplift MAU growth.
How can you improve active user growth?
- Use product analytics: To grow your product’s active users, you first need to understand what you’re up against. Use your product data to understand user behaviors and identify points of friction. Tools like heat maps, and A/B testing can help you identify issues, and allocate resources to improve your product.
- Segment communications: Capture information about your users, such as jobs-to-be-done, management level, and title, to segment your audiences. This way, you’re showing relevant information to the right people (and can avoid user frustration or in-app guide fatigue).
- Offer freemium and free trial offerings: Product-led organisations rely on their product, rather than marketing methods, to drive user growth. An easy way to add active users? A lower-friction freemium offering that lets users try the product before committing to it.
- Capture and apply user feedback: Understanding what your users want, and acting on their feedback, is a core pillar of active user growth. Users are your best source of ideas. When you listen and act on what they want, you can help build enduring habits for users and encourage advocacy.
- Focus on user acquisition: Brainstorm strategies to attract new users with your sales and marketing teams, and learn what’s working. If you have a free product, think about how you can use in-app messages to encourage upgrades at natural points in the users’ workflows.
Plot your product’s user growth relative to your peers in our interactive benchmark tool.
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