What is an MAU? Measuring monthly active users

Ever wondered how companies gauge the health of their products or measure user engagement? One of the key metrics they rely on is Monthly Active Users (MAU). It's more than just a number—it's a window into how users interact with products over time.

In this blog, we'll dive into what MAU really means, how to calculate it effectively, and how to use it to drive growth. We'll also touch on its limitations and how to complement it with other metrics. Let's get started!

Understanding monthly active users (MAU)

So, what's the buzz about Monthly Active Users (MAU)? Simply put, MAU tallies up the unique users interacting with your product over a 30-day period. It's like keeping tabs on how many people are dropping by and engaging with what you offer.

Why is MAU such a big deal? Well, as highlighted in this Investopedia article, MAU is a go-to metric for measuring user engagement and assessing product health. It helps you spot trends in user retention and make smarter strategic decisions.

But defining what makes an "active" user is key. Not all interactions are created equal, and for your MAU data to be meaningful, you need a clear definition. This AppsFlyer glossary entry underscores the importance of pinpointing what "active" really means for your product.

Keeping an eye on MAU isn't just about numbers—it helps you assess how effective your marketing is and how well you're retaining users. It feeds into other important metrics like Lifetime Value (LTV) and Cost Per Action (CPA). Another handy metric is the DAU/MAU ratio, which measures how often users engage with your product over a month. A higher ratio means more frequent engagement—think stickiness and, potentially, more revenue.

Of course, MAU isn't perfect. One of its drawbacks is the lack of industry standardization—it can’t fully capture the depth of user engagement or the quality of users. As pointed out in this Paddle resource, not all "active" users are the same.

Calculating MAU can also get tricky, especially when you're running experiments like A/B testing. If your test doesn't line up neatly with the 28-day window, figuring out MAU impact can be a headache. Some folks even question using MAU as a percentage of active subscribers. Since it's a snapshot in time rather than a reflection of historical data, it might not give the full picture.

Despite these hiccups, MAU is still a valuable tool for understanding user engagement and product health. Take Duolingo's focus on Current User Retention Rate (CURR), for example. By honing in on retaining active users, they saw a significant boost in their DAU growth. As part of a bigger set of metrics—including DAU and WAU—MAU gives you insights into user behavior and helps guide strategic business moves.

Calculating MAU: Methods and best practices

Getting the MAU calculation right starts with defining what an "active user" is for your product. According to Investopedia, it’s about focusing on actions that are meaningful to your specific service. But here's the catch: there's no industry-wide standard for calculating MAU, which can be a bit of a headache, as discussed on Reddit.

To keep things consistent and reliable, it's important to set clear definitions and use solid analytics tools. AppsFlyer suggests using unique identifiers like user IDs or email addresses to accurately track individuals. And don't forget to regularly review and tweak your MAU calculation methods to keep your data in top shape.

When you're calculating MAU for A/B testing, things can get a bit messy if your test doesn't line up with the 28-day window. A Reddit user points out the challenges of measuring MAU impact in these cases. To get around this, you might want to use cohort analysis or other advanced techniques to zero in on how specific changes impact your MAU.

Keeping an eye on the DAU/MAU ratio is also super helpful. A high ratio means users are coming back often—your product is sticky! A low ratio? Maybe not so much. Paddle stresses that tracking this ratio along with other metrics gives you a fuller picture of user behavior and product health.

Limitations and potential pitfalls of MAU

While MAU is a popular metric, it's not without its flaws. For starters, MAU doesn't measure how deeply users are engaging with your product—it just counts the number of unique users. So, someone who logs in once a month counts the same as someone who's on your platform every day, as noted in Investopedia.

Another issue is the lack of a standardized definition of what an "active" user is, making cross-company comparisons unreliable. Different businesses have different criteria for activity, so comparing MAU across platforms or industries can be like comparing apples to oranges.

Leaning solely on MAU can be misleading. It's crucial to pair MAU with other metrics like Daily Active Users (DAU), Weekly Active Users (WAU), and user retention rates to really understand user engagement and product health.

Plus, MAU might not be the best metric for early-stage businesses. In the beginning, MAU can be inflated due to the initial excitement around a new product. Keeping an eye on MAU over time is important to spot genuine growth trends.

So, to get the most out of MAU, businesses should:

• Clearly define what counts as an "active" user based on their product and goals.

• Use MAU alongside other metrics to get a well-rounded view of user engagement.

• Monitor MAU trends over time to spot growth opportunities and potential red flags.

Leveraging MAU data to drive growth

Digging into MAU trends can uncover some real gems about user retention and acquisition. By spotting patterns in your MAU data, you can identify areas to tweak and optimize your strategies. When you combine MAU with other key performance indicators (KPIs) like DAU and WAU, you get a fuller picture of user engagement.

Real-world examples show how powerful leveraging MAU insights can be. Take Duolingo, for instance. They reignited user growth by zeroing in on their Current User Retention Rate (CURR), which had a big impact on their DAU. By focusing on CURR, Duolingo boosted user engagement and retention.

Similarly, leading consumer brands measure marketing impact using methods like marketing mix modeling (MMM) and multi-touch attribution (MTA). As detailed in this newsletter, these data-driven approaches help businesses fine-tune their marketing strategies and make the best use of resources.

By leveraging MAU data along with these techniques, companies can make informed decisions that fuel growth. Tools like Statsig's MAU tracking capabilities and advanced analytics empower teams to dive deep into their data and drive success.

To get the most out of MAU data, consider:

• Regularly monitoring and analyzing MAU trends.

• Segmenting users based on engagement levels and behaviors.

• Conducting cohort analyses to spot retention and churn patterns.

• Using insights to refine product features and marketing campaigns.

Strategically leveraging MAU data can open up new growth opportunities and enhance user engagement. And with platforms like Statsig, accessing these insights becomes smoother and more actionable.

Closing thoughts

Understanding and effectively using MAU is a game-changer for tracking user engagement and product health. While it has its limitations, when combined with other metrics and carefully analyzed, MAU can guide strategic decisions that drive growth. Tools like Statsig can help you harness these insights to take your product to the next level.

If you're keen to dive deeper, check out our resources on active users explained or explore how Statsig's advanced analytics can empower your team. Hope you found this helpful!