DAU

What is DAU?

Simple Definition:
Daily Active Users (DAU) is the number of unique users who engage with a product or service during a 24-hour period.

Key Points:

• Counts each user only once per day
• Usually measured from midnight to midnight
• Requires clear definition of “active”

Why DAU Matters

1. Immediate Feedback
   • Shows daily product health
   • Reveals engagement patterns
   • Identifies immediate issues
2. Growth Indicator
   • Tracks user adoption
   • Shows product momentum
   • Measures marketing success
3. Revenue Potential
   • Indicates monetization opportunities
   • Predicts revenue patterns
   • Shows market penetration

Defining “Active” Users

General Definition Options

• App launch
• Feature usage
• Time spent
• Actions completed

SaaS-Specific Definitions

Basic SaaS Activity:

• Logging in
• Opening dashboard
• Viewing reports

Meaningful Engagement:

• Creating content
• Collaborating with team
• Completing core tasks
• Using key features

Value-Based Activity:

• Achieving business outcomes
• Meeting success criteria
• Completing workflows

How to Calculate DAU

Basic Formula

DAU = Number of Unique Users Who Performed an “Active” Action in 24 Hours

Calculation Example

For a project management tool:

• Total users who logged in: 1,000
• Users who only viewed dashboard: 200
• Users who created/edited tasks: 700
• Users who collaborated: 600

DAU (if requiring meaningful engagement) = 800 (users who created/edited tasks or collaborated)

DAU Variations for SaaS

1. Weighted DAU

Assigns different values to different activities: Weighted DAU = (Core Actions × 1.0) + (Secondary Actions × 0.5)

2. Team-Adjusted DAU

Considers team usage patterns: Team DAU = Teams with >50% Active Members

3. Feature-Specific DAU

Tracks usage of specific features: Feature DAU = Users Who Used Specific Feature

Industry Benchmarks

Consumer Apps

• Social Media: 10-50% of total users
• Games: 15-30% of total users
• Entertainment: 20-40% of total users

SaaS Products

• Business Tools: 15-30% of total users
• Enterprise Software: 20-40% of licensed users
• Team Collaboration: 30-50% of team members

Common DAU Measurement Mistakes

1. Wrong Activity Definition:
   Bad Example: Counting all logins as active usage
   Good Example: Counting meaningful feature usage
2. Ignoring User Context:
   Bad Example: Same criteria for all user types
   Good Example: Role-specific activity definitions
3. Overlooking Time Zones:
   Bad Example: Using a single time zone for global product
   Good Example: Adjusting for user local time

Tracking and Analysis Tools

• Google Analytics
• Mixpanel
• Amplitude
• Heap

DAU Relationship with Other Metrics

1. DAU/MAU Ratio

Stickiness = DAU ÷ MAU
Indicates product engagement level

Best Practices for DAU Tracking

1. Clear Definitions: Document activity criteria, update consistently, communicate team-wide, review periodically
2. Regular Monitoring: Daily tracking, weekly analysis, monthly reviews, quarterly trends
3. Contextual Analysis: User segments, use cases, team patterns, industry factors

Key Takeaways

• DAU is crucial but needs proper definition
• SaaS requires specific DAU considerations
• Team context matters in B2B products
• Regular monitoring and adjustment is key
• Combine with other metrics for full picture