Daily Active Users and Monthly Active Users (referred to as DAU and MAU respectively) are two important app metrics that help app developers monitor expected growth and revenue trends. If you don’t already know how to track and analyze these numbers, it is time to learn.
What are DAU and MAU?
You may be successful in acquiring new users with tactics like paid user acquisition and ASO, but you also need to keep those users. Find out how active they are on your app with DAU and MAU metrics.
Daily Active Users (DAU)
This metric reveals how many users engage with your app within a 24-hour time frame. Depending on how high or low this number is, DAU indicates if your target market likes your app.
Monthly Active Users (MAU)
Like DAU, this metric measures individual user engagement over a set period of time, but the duration of that time period extends to 30 days.
Dividing DAU by MAU shows the percentage of monthly users who used your app on a particular day.
How to find the DAU/MAU ratio
First, you must determine the specific actions that are counted as ‘active use’. This could include:
- In-app purchases;
- Watching videos;
- Logging in,
- Or other activities that are applicable to your app.
Next, pick one day of the month you want to further investigate. Take that day’s DAU and divide it by MAU before multiplying the result by 100 to convert it to a percentage.
When to use each metric
The immediate feedback from DAU reveals how well your target audience responds to new releases and app updates.
But do not forget that user engagement fluctuates on a day to day basis. Certain days of the week will have higher rates of engagement than others.
That’s why it is helpful to compare the DAU of the same day two weeks in a row. (e.g. Friday’s DAU two weeks in a row.)
You can take that a step further by comparing weekday activity to weekend activity. Look at a typical weekday’s DAU next to a weekend day’s DAU, also using two separate weeks for each day you analyze, giving you a total of four numbers to work with.
MAU is the appropriate metric for publicly sharing information to contribute to industry statistics.
In addition, this number provides a more accurate representation of an app’s typical user activity level, due to smaller variances in month to month metrics.
Contrast this to the wide variances between each day’s DAU, which can easily misrepresent the level of success your app is achieving.
The DAU/MAU ratio provides the best view of how well your app is being received by users. A good ratio lets you know your app is on the right track.
A poor ratio hints at the need to change something. Maybe you just need to remind users that they downloaded your app. Or maybe your app needs some improvements and updates so that it’s easier to use and provides a higher-quality experience.
Periodically observing the DAU/MAU ratio also reveals if your app is growing. The only way to increase revenue is to grow, but if your app isn’t growing you won’t be maximizing revenue from in-app purchases.
This ratio does have its limits though. It can’t tell you which specific users continue to engage and which specific users are churning. Getting this detailed information requires additional analysis steps.
DAU and MAU are both valuable metrics and combining them as a ratio provides the most insight. Pay attention to these engagement metrics if you want to make sure your app is successful.
Get more useful tips and tricks that will help you build and market your app at AppRankCorner.