Engagement Rate
A measure of how actively users interact with your product or content.
Definition
Engagement rate measures the depth and frequency of user interaction. In product: it's often DAU/MAU, session frequency, or actions per session. In marketing: it's (likes + comments + shares) / impressions. High engagement indicates strong product-market fit because users find enough value to keep returning and interacting.
Engagement rate is a leading indicator of retention and monetization. Products with high engagement convert better, retain longer, and generate more word-of-mouth.
Why it matters for founders
Engagement rate separates products people use from products people love. A signup without engagement is a vanity metric. Engagement proves you're delivering real value and is the foundation for monetization.
Example
TikTok's average engagement rate (4-8% per post) dwarfs Instagram's (1-3%) and Twitter's (0.05%). This superior engagement helped TikTok grow to 1B+ users in record time because high engagement drives algorithm distribution and word-of-mouth.
How Foundra helps
Foundra's Proof Signals card tracks engagement metrics specific to your product, helping you understand whether users are truly deriving value.
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Related terms
Daily Active Users (DAU)
The number of unique users who engage with your product on a given day.
Monthly Active Users (MAU)
The number of unique users who engage with your product within a 30-day period.
Activation Rate
The percentage of new users who complete a key action that predicts long-term retention.
Churn Rate
The percentage of customers who stop using your product in a given period.