What is the definition of Monthly Active Users (MAU)?
Monthly Active Users (MAU) is a metric used in app and website analytics to measure the number of unique users that engage with a digital product or service within a specific month. It provides insights into the size and reach of a user base over time. MAU is often used alongside other metrics like Daily Active Users (DAU) and Average Revenue per User (ARPU) to gain a comprehensive understanding of user behavior and the success of a digital product or service.
Why is Monthly Active Users (MAU) important?
MAU is important for several reasons:
-
Performance Evaluation: MAU allows app marketers to assess the success and growth of their app over time, helping them make data-driven decisions and identify areas for improvement.
-
Resource Allocation: Knowing the number of active users and understanding their preferences and behaviors enables marketers to allocate resources more effectively, guiding feature updates and user acquisition strategies.
-
Investor Confidence: Increasing MAU numbers can impress investors and potentially secure funding for further development and expansion.
-
Benchmarking: MAU serves as a benchmarking tool against competitors, helping app marketers assess their app's performance relative to industry standards and competitor apps.
While MAU is important, it should not be used as the sole indicator of an app's success or health. Other metrics like Stickiness Rate, New vs. Returning Users Ratio, Referral Metrics, and Retention Rate complement MAU and provide a more comprehensive understanding of an app's performance.
How to Calculate Monthly Active Users (MAU)?
To calculate MAU, follow these steps:
-
Determine the time period: Choose a specific month for which you want to calculate MAU.
-
Define what constitutes an active user: Depending on the company, the definition of an active user may vary and can include specific actions or interactions with the product or service.
-
Identify the criteria for user identification: Companies typically use identifiers like usernames or email addresses to recognize unique users within the defined time period.
-
Eliminate duplicate, false, and spam accounts: Remove any accounts that could distort the MAU data.
-
Calculate the number of monthly active users: Count the number of unique users who meet the requirements for being an active user within the chosen month, using the company's internal data.
It's important to note that MAU focuses on the quantity of users and does not provide detailed information on user engagement or quality.
