What is monthly active users?
Monthly active users is a metric that measures the percentage of unique users who interacted with your product within a month.
This metric is generally utilized in subscription-based businesses.
How to calculate monthly active users?
To calculate monthly active users, sum total the ‘number of unique new users in a month’ and the ‘number of unique returning users in the month’ and you’ll get your number of monthly active users.
Remember to use the figures for a single month. Many analytics tools can easily show you your monthly active users.
Formula for calculating monthly active users
Real-life example of monthly active users
Let’s say, you offer micro team management software. In the last month, the number of new users was 550 but 150 out of those logged in more than once. So your number of “unique” new users will be 400 (550 - 150).
Similarly, the number of unique returning users in that month was say, 500.
Then your monthly active users (MAU) will be: 400 + 500 = 900
What’s considered a good monthly active users? (benchmark)
A good rule of thumb is 20-30% for MAU:DAU, but there's no hard and fast rule.
The Monthly Active Users metric varies widely based on factors such as application type, user type, and application purpose.
According to Andrew Chen, a DAU:MAU of 20% is considered good. Facebook has around 50% DAU/MAU.
Ways to increase your monthly active users
- Personalized onboarding process: Begin with personalizing the first interaction your users have with your product. And then, employ interactive walkthroughs to take users through features, helping them see how each part solves their problem.
- Engage with your users: You need to make your users heard. Use various ways to engage with your customers. One might be, sending personalized notifications so your users remember you and keep coming back. 80% of customers are more likely to make a purchase when brands offer personalized experiences.
- Focus on product stickiness: Nothing is more important to increase your MAU than designing a great product. Users will use a product that provides value and solves their problems and a great product will automatically retain them. Read this guide on: How To Make Product Improvements in SaaS
Also Read: Related Metrics
- Net Promoter Score
- Customer Churn Rate
- Customer Lifetime Value
- Customer Retention Rate
- Repeat Purchase Rate
- Customer Satisfaction Score (CSAT)
- Renewal Rate
- Customer Acquisition Cost
- First Contact Resolution Rate (FCR)
- Free Trial Conversion Rate
- Daily Active Users (DAU)
- Average Revenue Per User
- Referral Program ROI
- Upsell Rate & Cross-sell Rate
- Viral Coefficient
- Participant Share Rate
- Invitation Conversion Rate
- Net Dollar Retention
- Product Adoption Rate
- Sessions per User