MAU

Monthly Active Users (MAU) is a metric used by businesses to measure the number of unique users who engage with their product or service within a 30-day period. It is a key performance indicator that provides valuable insights into the popularity and engagement of a product or service.

What is MAU?

Monthly Active Users (MAU) is a metric that calculates the number of unique users who engage with a product or service within a 30-day period. It is a key metric businesses use to measure their growth, popularity, and engagement. This metric is commonly used for digital products, including websites, mobile apps, and social media platforms, as it provides valuable insights into user behavior.

The Importance of MAU

Monthly Active Users is an essential business metric, providing valuable insights into user behavior, product popularity, and engagement. Some of the reasons why monitoring MAU is important include:

• Measure Growth: MAU is an excellent metric to measure a product’s growth over time. By tracking the number of unique users who engage with a product or service each month, businesses can track their growth and make informed decisions about their product strategy.
• Identify User Behavior: MAU helps businesses understand user behavior, such as how often they engage with a product or service, and how long they spend on the platform. This information can help businesses optimize user experience, improve engagement, and increase retention rates.
• Compare Against Competitors: MAU is an industry-standard metric that businesses can use to compare themselves against their competitors. By tracking their MAU and comparing it to their competitors, businesses can gain insights into how they stack up in the market and identify areas for improvement.

How to Calculate Monthly Active Users?

Monthly Active Users can be calculated using a simple formula:

1. Count the number of unique users who engage with a product or service within a 30-day period.
2. The resulting number is the Monthly Active Users for that period.

For example, suppose a social media platform has 10,000 unique users who engage with the platform at least once in 30 days. In that case, their Monthly Active Users for that period would be 10,000.

MAU Formula and Calculation Based on DAU

The most straightforward way to calculate the Monthly Active Users metric is by using the number of unique users who engage with a product or service within a 30-day period. Here’s how to calculate the MAU using the DAU metric:

1. Determine the Number of Active Days

• Count the number of days in the month
• Subtract any days where the product or service was not available for use (e.g., maintenance, downtime, etc.)
• The resulting number is the number of active days in the month

2. Calculate the Average DAU

• Add up the number of unique users who engaged with the product or service each day in the active days
• Divide the total by the number of active days

3. Calculate the Monthly Active Users

• Multiply the Average DAU by the number of active days in the month

MAU Calculation Example

For example, suppose a company has 10,000 unique users who engage with their product or service each day in a 28-day month. Here’s how to calculate the MAU using the formula above:

1. Determine the Number of Active Days

Active days in the month = 28

2. Calculate the Average DAU

Total unique users = 10,000 x 28 = 280,000
Average DAU = 280,000 / 28 = 10,000

3. Calculate the MAU

MAU = Average DAU x Active days in the month = 10,000 x 28 = 280,000

In this example, the company has an MAU of 280,000, which is the average number of unique users who engage with their product or service each month.

MAU Formula and Calculation Based on ARR and DAU

In addition, there are other methods to calculate the MAU metric. One such method is by using the Annual Recurring Revenue (ARR) and Daily Active Users (DAU) metrics. Here’s how to calculate the Average MAU using ARR and DAU:

1. Calculate the Average Revenue Per User (ARPU)

• Divide the ARR by 365 to get the Daily Recurring Revenue (DRR)
• Divide the DRR by the DAU to get the Average Revenue Per User (ARPU)

2. Calculate the Average MAU

• Divide the ARR by the ARPU to get the Annual Active Users (AAU)
• Divide the AAU by 12 to get the Average MAU

MAU Calculation Example

For example, suppose a company has an ARR of $1,200,000, and a DAU of 10,000. Here’s how to calculate the Average MAU using the formula above:

1. Calculate the ARPU

DRR = ARR / 365 = $1,200,000 / 365 = $3,287
ARPU = DRR / DAU = $3,287 / 10,000 = $0.3287

2. Calculate the Average MAU

AAU = ARR / ARPU = $1,200,000 / $0.3287 = 3,649,454
Average MAU = AAU / 12 = 3,649,454 / 12 = 304,121

In this example, the company has an Average MAU of 304,121, which is the average number of unique users who engage with their product or service each month.

How to Use MAU for Business Strategy?

Monthly Active Users can be used by businesses to optimize their business strategies in several ways, including:

• User Acquisition: Businesses can use MAU to optimize their user acquisition strategy by identifying the channels that bring in the most users. Businesses can increase their MAU and grow their user base by focusing on these channels.
• User Retention: MAU can also be used to optimize user retention strategies by identifying the factors that lead to user churn. By addressing these factors, businesses can improve user retention rates and increase MAU.
• Product Optimization: By analyzing MAU data, businesses can gain valuable insights into user behavior and identify areas for product optimization. For example, if users are spending less time on the platform, businesses can investigate the user experience and make improvements to increase engagement.
• Revenue Optimization: Finally, MAU can also be used to optimize revenue strategies by identifying the most valuable users. By segmenting users based on their engagement and revenue contribution, businesses can optimize their revenue strategies and increase their profitability.

Conclusion

Monthly Active Users (MAU) is a key metric used by businesses to measure the number of unique users who engage with their product or service within a 30-day period. It is an essential metric that provides valuable insights into user behavior, product popularity, and engagement. By tracking MAU and analyzing the data, businesses can optimize their user acquisition, user retention, product optimization, and revenue strategies.

Calculating MAU is a simple process that involves counting the number of unique users who engage with a product or service within a 30-day period. By understanding the importance of MAU and how to use it effectively, businesses can make informed decisions that drive growth, engagement, and profitability.