If you’re like most people, you probably have a lot of questions about user engagement. What is MAU? How do I calculate it? What does it mean for my business? Don’t worry, we’re here to help.
In this blog post, we’ll explain everything you need to know about what is MAU and how this metric can help you improve your user engagement strategy.
What Is MAU?
MAU stands for monthly active users. It’s the number of unique visitors who perform some kind of action within your app during a 30-day period.
MAU is a key performance indicator of online engagement. Many publicly traded companies count this as one of their key metrics in their quarterly and annual reports. Investors also use MAU as a barometer of a company’s health.
But how “active” does one have to be, to be counted as a monthly active user? What constitutes “use” in this metric?
“The purpose of this metric is really to show that end users are getting value from your product.”
It’s not just semantics.
No two software firms are alike. This is reflected in the broad latitude that they have.
They have different sized businesses, different models, and varying objectives, and they need to articulate them.
How to Calculate the DAU/MAU Ratio
The DAU/MAU ratio is a useful metric for gaining insights into your business’s performance and planning for future growth.
Here are five steps to calculate the Daily Active Users (DAU) to Monthly Active Users (MAU) ratio.
1. Determine What Counts as “Active User”
The first step in measuring your DAU/MAU is deciding what you consider to be active or inactive users. To do this, think about what is most important about your app, and decide which metric(s) you want to keep track of.
If your primary goal is to raise awareness, then a customer viewing a certain page could be counted as an activity.
If you want to find out how many customers are purchasing from your application, you should define active use as making a purchase.
2. Find Daily Active Users (DAU)
Your Daily Active Users are the unique visitors who opened your app at least once in 24 hours.
You could also calculate the average daily number of users that visits your app. To do this, add up the unique number of daily visitors for one month. Then, divide that number by the number of days in that month.
Average DAU = sum of each day’s unique users/number of days in the month
To find your average daily active user count, first, add up the unique number of users from every day in September.
You would get 153 new users in a month. Then, take that number and divide it by 30.
The average number of daily active users is 5.1.
3. Find Monthly Active Users (MAU)
To figure out your MAU, choose a single month and determine how many unique users were active during that period.
Alternatively, just like DAU, you could calculate the average number of users that visit your app per month. To do this, add the number of unique users each month for a year. Then, divide that number by 12.
4. Input The Values Into DAU/MAU Formula
While measuring your Daily Active Users and Monthly Average Users by themselves can be informative, combining them can help you understand how much engagement you’re receiving from your users.
Divide your Daily Active Users (DAU) by your Monthly Average User (MAU) and multiply by 100 to get the percentage.
A percentage is a much easier way to measure user engagement and is much more understandable for other people, such as investors, colleagues, and clients. Your result is the average percentage of times that users interact with your application in a month.
5. Consider Calculating Related Metrics
DAU/MAU is just one metric that you can use with other key performance indicators (KPIs) to get a better overall view of how your application is doing.
While it’s crucial to measure your data, it’s equally important that you test your processes and make improvements to them so you can run your business as smoothly and as efficiently as possible.
Here are some other key performance indicators you can try:
DAU/WAU ratio: WAU can help you understand how many users engage with your app during the week.
Cohort retention: Cohort analysis measures customer retention or the rate at which customers continue to support a business. It does so by analyzing cohorts which are groups of users that share the same characteristics.
Customer acquisition cost: This metric helps companies figure out how much time, effort, and money they spend on attracting new customers.
Customer churn rate: The rate at which a customer ceases to subscribe to your service or support your business is called customer churn. This can help you understand how many customers you’re losing to competitors and enable you to take steps to combat it.
Conversion rate: The conversion rate is the percentage of visitors to a website who become paying customers. This can help companies understand how much value they’re getting from users.
Revenue: Revenue is a measure of how much your company is earning. This is typically the job of an accounting or finance team.
What Is MAU?
MAU is a KPI used by social media companies to measure the number of unique visitors who access their site within a month. Most websites will recognize a monthly active user by an email address, username, or ID number.
MAU is used to measure the health of a website and is the basis of other key performance indicators. MAU can be used to assess the effectiveness of a company’s marketing initiatives and gauge the experience of both current and prospective customers. Investors in the social media industry pay attention to MAU, as it is a metric that can affect the stock value of a company.
We hope this blog post has helped you understand what is MAU is and how to calculate it. Remember, this metric can be a valuable tool for measuring user engagement on your site or app. By tracking MAU, you can identify trends and make changes to improve the overall experience for your users.