DAU/MAU — A Go-To Metrics to check the health of your Product
As a marketer, these questions probably crossed your mind at some point:
- How many users use my product within a single day? Within a month?
- How do I use these metrics?
- How do my numbers compare to other apps?
These questions can be answered by measuring the stickiness of your app/product with metrics like DAU and MAU.
What is DAU?
Daily Active Users (DAU) measures the number of active users who visit your app in a single day.
Keep in mind this metric tracks usage based on individual, not sessions. For example, if a single user launches your app multiple times a day, the DAU for that user would still only be one.
This gives you an accurate reading of how many unique visitors you’re getting on a daily basis.
Here’s how you calculate DAU:
DAU= No of users open your app/website in a day
What is MAU?
Monthly Active Users (MAU) measures the number of unique users to your product over a 30-day period.
This stickiness metric indicates your app’s ability to attract and retain users over time.
MAU= No of users open your app/website within a 30days TimeFrame
What is Daily Active Users to Monthly Active Users Ratio?
Daily Active Users (DAU) to Monthly Active Users (MAU) is the ratio of the number of unique daily users of an application, to the number of unique monthly users of the same application. It is a useful metric to measure the stickiness of an application or platform.
How to calculate Daily Active Users to Monthly Active Users Ratio
Simply divide DAU by MAU to get the user ratio percentage. Example: If you have 1,000 daily users and 5,000 monthly users, the DAU/MAU ratio is 20%. The DAU/MAU ratio will tell you the rate of returning users (a.k.a. stickiness). A high rate suggests good engagement and perceived value, whereas a low rate indicates a lack of interest that requires further analysis.
What is a good Daily Active Users to Monthly Active Users Ratio benchmark?
Social applications generally have a higher DAU:MAU ratio, sometimes greater than 50%. For most other apps, a good DAU:MAU ratio is around 20%.
Example
An application with 300 daily active users and 1,000 monthly active users has a DAU:MAU ratio of 30%.
When DAU and MAU are combined, they tell the story of an application’s growing customer base alongside the ability of the application to engage users more frequently.
The closer to 100% the DAU:MAU ratio is, the better the engagement and stickiness of the application.
That’s all I wanted to discuss today on DAU/MAU, I welcome your suggestions, questions, and feedback.
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