DAU/MAU Ratio

What is the DAU/MAU Ratio?

Simple Definition:
The DAU/MAU ratio compares your Daily Active Users (DAU) to your Monthly Active Users (MAU). It shows what percentage of your monthly users engage with your product daily.

Formula:
DAU/MAU Ratio = Daily Active Users ÷ Monthly Active Users

Example:

If your app has:

• 1,000 daily active users (DAU)
• 4,000 monthly active users (MAU)

DAU/MAU = 1,000 ÷ 4,000 = 0.25 or 25%

This means 25% of your monthly users use the app on any given day.

Why is DAU/MAU Important?

1. Measures Product Stickiness
   • Shows how “addictive” your product is
   • Indicates user habit formation
   • Reflects product value to users
2. Predicts Business Health
   • Higher ratios often mean better retention
   • Helps forecast growth
   • Indicates potential revenue stability
3. Guides Product Decisions
   • Shows feature effectiveness
   • Helps identify engagement issues
   • Guides development priorities
4. Attracts Investment
   • Key metric for investors
   • Benchmark against competitors
   • Industry standard for valuation

Industry Benchmarks

Social Media

• Facebook: ~50-60%
• Instagram: ~35-45%
• X (Twitter): ~25-35%

Gaming

• Casual games: ~15-25%
• Core games: ~30-40%
• Top performing games: ~45%+

Business Tools

• Enterprise software: ~15-25%
• Project management: ~20-30%
• Communication tools: ~30-40%

E-commerce

• Traditional retail: ~10-20%
• Daily deals: ~20-30%
• Food delivery: ~15-25%

How to Calculate DAU/MAU Accurately

1. Define “Active”

First, establish what counts as an active user:

• Good Definitions: Meaningful in-app actions, Core feature usage, Substantial time spent
• Poor Definitions: Just opening the app, Background processes, Accidental clicks

2. Choose Your Timeframe

For accurate calculations:

• Use consistent 30-day periods
• Account for weekday/weekend variations
• Consider seasonal patterns

3. Example Detailed Calculation

Given these numbers:

• Week 1 DAU average: 1,000
• Week 2 DAU average: 1,200
• Week 3 DAU average: 800
• Week 4 DAU average: 1,000
• Monthly unique users: 5,000

Monthly average DAU = (1,000 + 1,200 + 800 + 1,000) ÷ 4 = 1,000
DAU/MAU = 1,000 ÷ 5,000 = 0.2 or 20%

Interpreting DAU/MAU Ratios

High Ratio (>50%)

Indicates:

• Strong user engagement
• Product-market fit
• Potential for growth
• Effective retention

Medium Ratio (20-50%)

Indicates:

• Moderate engagement
• Room for improvement
• Typical for many products
• Stable user base

Low Ratio (<20%)

Indicates:

• Weak engagement
• Possible product issues
• Need for improvement
• Risk of churn

How to Improve Your DAU/MAU Ratio

1. Enhance User Experience: Streamline core features, reduce friction points, improve app performance, optimize onboarding
2. Increase Daily Value: Add daily rewards, create daily habits, provide fresh content, enable social interactions
3. Use Engagement Tactics: Push notifications, email reminders, social features, gamification elements
4. Analyze and Iterate: Track user behavior, test new features, gather user feedback, make data-driven changes

Advanced Analysis Techniques

1. Cohort Analysis: Track ratio changes over time, compare user groups, identify patterns
2. Segmentation: Analyze ratios by user type, geography, platform, acquisition channel
3. Correlation Studies: Compare DAU/MAU with revenue metrics, retention rates, customer satisfaction, and feature usage

Key Takeaways

• DAU/MAU ratio is a crucial engagement metric
• Industry context matters for benchmarking
• Consistent measurement is essential
• Improvement requires a systematic approach
• Consider alongside other metrics