Totango Core Metrics: Engagement Score, Usage Frequency, Time Spent, Active Users and License Utilization

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5 comments

  • Pavel Hardak

    Excellent explanation of Totango core metrics. What is missing - how Engagement score and Usage frequency are calculated for recently created (less than 14 days) accounts?

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  • Oren Raboy

    Hi Pavel,

    First appologize for the late reply to your question. Our new knowledgebase is still in soft launch and we missed the incoming comment.

    To answer your question: Totango looks at the avg. number of user-actions registered daily on the account up to the past 14days. If the account is new (for example, created 3 days ago), only the days since its the past 3 days is considered and the daily average is compared against that of other accounts (which may include a longer time-span, of up to 14days, if they were created earlier).

    Also worth noting that accounts with less than 1 activities/day on average will be assigned 0 as their engagement score. We've found this improves the algorithm by weeding out accounts with a very small amount of activity and declaring them as inactive.

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  • Pavel Hardak

    Another comment - I see the engagement score is calculated across the accounts per account type, i.e. free, paying and cancelled. Engagement score for cancelled accounts is not relevant. Regarding free vs. paying - in typical SaaS app with freemium model the percentage of paying customers usually is about 3-5%. It is not clear where to put customers with 'Trial' status - probably into 'free', as they do not pay. However, it means they would get artificially high score compared with "real" free customers, as majority of them is less active. It might be good idea to have "trial"customers as the separate status type, so the engagement score for them would be computed relative to other trial accounts. This way, SCMs can focus on accounts with high engagement score, as those might be good candidates to upgrade to "premium" tier, and on low engagement score to check for problems. Currently, there is no such differentiation and therefore engagement score for the customers with the "free" status type is not as usable as it could be.

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  • Oren Raboy

    Hi Pavel,

    For the purpose of Engagement score calculation, the account's Status attribute is used (not the Status type). So if you define a Status value of -Freemium- and a different one -Trial-, these groups will be treated and normalized separately

    For apps with a freemium plan and a trial program (typically time-based trials which 'fall-back' to a basic freemium plan once they expire), we recommend placing the Freemium plan in the Free status-type.

    We updated the article to reflect this example to hopefully create more clarity on the topic.

    Let us know if you have any additional questions or concerns on this.

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  • Stewart Fernandez

    good

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