Continuing the series on user acquisition KPIs, I want to introduce a metric that might not be widely recognized but can serve as a valuable health indicator. This calculated metric offers insight into the experience of a new user and, in our particular situation, could reveal underlying product or business issues.
Percentage of user acquisitions that signed up and converted within the same day, referred to as "single touch acquisitions."
New users who registered and placed their first order on our platform within the same day.
Why it matters:
The online food delivery marketplace is an industry that typically is high-intent and it involves immediate decisions. Most of the time, users who land on our platform are hungry and eager to order. Industries that cater to urgent needs often generate high user conversion rates, so we've found that the proportion of people who sign up and order within the same day is a valuable health indicator.
A low percentage of single touch acquisitions could signal a poor user experience. This might be due to a variety of reasons, such as technical downtime or supply issues like closed shops, limited offers, or marketing campaigns promoting something that's already expired.
It's different to generate 1,000 acquisitions with 1,200 signups compared to generating 1,000 acquisitions with 4,000 signups. The end result may be the same, but the share of single touch acquisitions varies significantly.
Some teams promote and even incentivize signups on their platforms, although the reason for doing so might not always be clear. A marketing campaign focused on this can negatively impact this KPI.
This metric emphasizes a specific time window that might not apply to every business. For example, if you run a leasing company, this KPI is unlikely to be relevant (unless you work in instacar 😉). Additionally, a user's order might not necessarily occur within the same session or on the same device as the signup, adding complexity to this measurement.