Explain what DAU/MAU means

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Answer
DAU/MAU stands for the ratio of Daily Active Users (DAU) to Monthly Active Users (MAU). It is a metric used to measure the stickiness or engagement of a product, app, or website.

What is DAU?

DAU (Daily Active Users) refers to the number of unique users who engage with a product or service within a 24-hour period. This engagement is typically defined by specific actions like logging in, making a purchase, or using certain features.

What is MAU?

MAU (Monthly Active Users) is the number of unique users who engage with a product or service over the course of a 30-day period, usually calculated as a rolling 30-day window.

Calculating DAU/MAU Ratio

The DAU/MAU ratio is calculated by dividing the DAU by the MAU and multiplying by 100 to get a percentage: DAU MAU Ratio=DAUMAU×100%\text{DAU MAU Ratio}=\frac{\text{DAU}}{\text{MAU}}\times 100\% For example, if a product has 1,000 DAU and 10,000 MAU, the DAU/MAU ratio would be: DAU MAU Ratio=1,00010,000×100%=10%\text{DAU MAU Ratio}=\frac{1,000}{10,000}\times 100\%=10\% This means that 10% of the monthly active users engage with the product on a daily basis.

Importance of DAU/MAU

The DAU/MAU ratio is an important metric because it provides insight into user retention and engagement. A higher ratio indicates that a larger proportion of monthly users are actively engaged with the product on a daily basis, which is generally seen as a positive sign of product stickiness and user loyalty. While DAU and MAU individually provide useful data points, the DAU/MAU ratio gives context by showing the relationship between daily and monthly usage. This ratio is closely watched by companies and investors as a key indicator of a product's success and potential for growth and monetization.
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