Daily Active Users to Monthly Active Users (DAU/MAU)

Every SaaS company aims to have a growing user base with active and engaged users. Daily active users or monthly active users is the number of unique visitors who interact with your service in a day/month. The metric shows you how valuable your product is to your customers and gives insights into user behavior. However, it does not reflect how much users are willing to engage with your product. Having daily active users is great, but if they have no business impact, they are worthless. For example, if your business case is a freemium model and people use your product for free without taking further action and upgrading to premium plans, your business will fail. So do not fall into the trap of looking solely on this metric.

How to calculate daily active users / monthly active users

Calculating the DAU / MAU depends on how you define active users. Different companies define active users differently, for example, by users who opened the app/service, or users who liked, commented, or shared a post. No matter how you determine the metric, it is vital to keep the business impact in mind. A growing base of active users seems excellent. Still, if your definition of active users has no business impact, you will lull yourself into a false sense of security, and the metric becomes meaningless. Since different companies define “active users” differently, waste no time looking for comparisons. Instead, create your own benchmark. Define DAU once, share it with your team, and use it as a benchmark to establish a growth mindset.

How to increase daily active users / monthly active users

• Provide value regularly
• Create a community around your service
• Use push notifications & regular, valuable e-mails

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