Metrics MAU, WAU, DAU: When to Apply and How to Improve

Date: 2024-08-15 | Time of reading: 7 minutes (1354 words)

The effectiveness of mobile applications and online services is closely tied to user activity. If people are logging in and using the service, it indicates that the developers' idea is successful and will generate revenue. It is important to track user behavior and conduct analytics to understand the problems and growth areas of the product.

This issue is addressed by product metrics measuring activity over a day (DAU), a week (WAU), and a month (MAU). The time tracking interval is chosen depending on the type of application and the tasks it solves. DAU, WAU, and MAU metrics reflect how popular the product and individual solutions are.

In this article, we will discuss why it is important to track how many users remain active over different time intervals. We will explain the correct calculation of results and ways to influence them.

DAU metric

The DAU indicator denotes how many active users logged in and/or performed an action in the application in one day (Daily Active Users). Only unique visitors per day are counted. If one person opened the product multiple times, only the first entry is considered.

Example: 300 people downloaded an app to keep a diary. On the second day, 150 of them logged in. Therefore, DAU = 150. Even though some used the app multiple times, only the first interaction is counted.

When to apply the DAU metric

Counting active users per day is suitable when the application or service is designed for daily interaction: calendars, planners, habit trackers, games, music, and so on.

WAU metric

The WAU indicator reflects the product's weekly active users (Weekly Active Users). Similar to the daily activity metric, only unique visits are counted, but WAU is not the sum of DAU over seven days.

Example: A banking app was installed by 200 people, and 70 of them logged in at least once during the week. Therefore, WAU is 70.

When to apply the WAU metric

This metric is relevant for services/apps intended for regular use, but not necessarily daily. These include health trackers, delivery services, messengers, financial tools, and others.

MAU metric

The MAU indicator counts users who accessed the product at least once a month (Monthly Active Users). This metric is calculated separately and is not the sum of DAU or WAU.

Example: A flight booking app was downloaded by 1000 people. Within thirty days, 300 users logged in once, and another 150 logged in three or more times. However, for MAU, only the first login is counted, so the metric is 450.

When to apply the MAU metric

MAU is relevant for platforms that do not require daily or even weekly usage. These include services for booking travel, paying taxes, utilities, marketplaces, and so on.

How to accurately calculate MAU, WAU, DAU

While product metrics do not require complex formulas, there are nuances in their calculation that should be considered.

Define active users in advance. It’s essential to specify who counts as an active user. Simply opening an app may not indicate effectiveness, especially in services where specific actions matter. For instance, a user might click on a marketplace app and immediately exit. In such cases, the activity should be defined as viewing products, adding items to the cart, or making a purchase.

Determine the appropriate time Interval. Choose the right time interval to track activity. Daily DAU metrics are not relevant for services used infrequently and might incorrectly suggest inefficiency. For example, it would be unreasonable to expect users to log into a fitness club app every day if it mainly functions for class bookings, as few people attend daily workouts.

Consider external factors in calculations. Account for external influences when calculating metrics. Marketing campaigns aimed at attracting new users can temporarily boost MAU, WAU, and DAU, which might drop after the campaign ends. This doesn’t necessarily indicate a decline in service quality. News events can also impact user activity, such as reports of widespread food poisoning potentially reducing orders through food delivery apps.

Segment your audience. Understanding what attracts new users versus long-term users is crucial. Their needs may differ significantly. Additionally, segment users by time zones to accurately track daily activity (especially for DAU), by devices, and by payment types (one-time purchases, subscriptions, etc.).

Why calculate MAU, WAU, DAU

These metrics are crucial for understanding the real popularity of a service or application. The number of downloads on the marketplace alone doesn't provide a complete picture, as users might not even open the product after downloading it.

Therefore, DAU, WAU, and MAU are calculated to:

Monitor the proper functioning of the application/service. Reduced activity can sometimes be linked to system glitches and errors. Tracking these metrics allows for quick detection and resolution of such issues.

Evaluate marketing communications and advertising. Tracking these metrics helps assess how well marketing efforts attract the target audience, rather than just random users. It also helps measure the effectiveness of specific campaigns aimed at increasing activity and engagement, which is vital for planning future budgets and advertising strategies.

Test new features. User activity metrics reveal whether updates are relevant. They help identify which features should be improved or removed to enhance user experience.

Attract investments. Stable and growing user activity demonstrates the product's success. For investors, this is a strong incentive to invest, as it indicates a high likelihood of profitability and return on investment.

Stay relevant in a competitive environment. Tracking daily, weekly, and monthly activity metrics, and comparing them with competitors, highlights the need for changes or improvements to well-performing features.

How to improve DAU, WAU, and MAU

Metrics are not static; they are influenced by various factors. Therefore, creators of digital products can adjust these metrics through marketing tools and technical improvements.

Key factors for improving metrics:

User-friendly interface and attractive design. Your product should stand out on the user's screen and be intuitively understandable. Complex action scenarios that require a lot of time will not motivate users to return and stay active.

Attractive interface of Netflix home page

Stable product performance. Constant errors, crashes, and slow customer support responses will reduce user activity as they visit applications/services less frequently. Therefore, it is essential to ensure everything works correctly, respond quickly, and resolve issues promptly.

Content diversity and personalization. In today's market, with numerous offerings, it's crucial to study user interests in detail, monitor their changes, and adapt accordingly. Don't be afraid to be creative with your content and analyze audience preferences to make precise proposals. This way, users will engage with your products more often.

To learn more about content personalization, read the article Personalization: What It Is and Why Personalized Marketing Matters.

An effective way to diversify content is by introducing gamification elements and a system to reward user activity.

Consistent communication with the audience through push and email notifications. Keep users informed about promotions, discounts, new features, and interactive events in your application or service. Continuing to engage with users within the app is also crucial. Therefore, onboarding and a well-structured communication system are necessary for ongoing interaction.

Email promotion from Sephora beauty store

Conduct analytics and respond to user feedback. Listen to customer reviews to continuously improve your product. Conduct audience preference research, such as custdev, A/B testing, and other methods.

It's important to assess the effectiveness of your service or application from various angles, not just by focusing on WAU, MAU, and DAU. Typically, additional metrics are considered, such as the Sticky Factor, LTV (Lifetime Value, the total revenue from a customer over their lifetime), conversion rates, CAC (Customer Acquisition Cost), and others.

Summary

MAU, WAU, and DAU are metrics that measure user activity over different time periods: thirty or thirty-one days, seven days, and one day. They are used to assess the popularity of an app or online service, evaluate marketing effectiveness, gauge the impact of new features, and attract investment.

To calculate these metrics, it’s important to define what constitutes user activity, choose the right tracking period (day, week, month), consider external factors, and segment the audience.

To increase MAU, WAU, and DAU, strategies such as targeted messaging, personalization, engaging content, and continuous interface improvements, along with ongoing analytics, are employed.