What is Daily Active Users? What is the formula and why it is important

If your content marketing strategy isn’t delivering the results you expected, it might be time to start paying attention to daily active users (DAU). Whether you’re running a mobile app or simply writing blogs and creating social media posts, tracking DAU can give you unprecedented insight into what your customers are actually doing—and why. With a clearer understanding of how customers interact with your business, you can adjust your methods to deliver more successful campaigns. In this blog post we’ll explore everything from important terminologies related to DAUs, common misconceptions about them and tips on how to increase engagement with yours. Ready to become an expert in daily active users? Let’s jump right in!

What are Daily Active Users?

Daily active users (DAU) is a key performance indicator used to gauge the success of a product. It provides insight into the number of unique users engaging with the product on a daily basis. Despite some believing, DAU is a mere vanity metric, it remains a popular metric amongst SaaS companies.

Essentially, DAUs capture the number of people using a specific product on a daily basis – everything from social media posts seen and interactions made to app downloads accumulated in one day. As such, businesses use it as a benchmark for evaluating both product efficacy and performance. User retention themes also emerge from DAU data, suggesting businesses can evaluate their marketing campaigns’ effectiveness through their own research into user engagement rates gleaned from these metrics.

Why Is It Important For Startups To Track Daily Active Users?

For entrepreneurs starting out, tracking your daily active users (DAU) is one of the most important strategies for long-term success. Tracking DAU reveals user engagement patterns, gives an understanding of customer loyalty, and helps anticipate future trends.

By having a birds-eye view of how customers interact with your product or services every day, startups are better able to strategize, develop effective marketing campaigns, and adapt quickly to changing customer tastes.

With this information, entrepreneurs can also spot bottlenecks that may be hindering growth like customer service issues or technical challenges.

Furthermore, monitoring DAU will give you invaluable insights into what’s working and what needs improvement so you can focus your resources on projects that will have the most positive impact on your business.

With accurate data at your fingertips, startups can make educated decisions that ultimately lead to greater success and profitability.

How do you calculate Daily Active Users?

To calculate daily active users, we use the total number of unique users on a given day.


[Unique new users] + [unique returning users] = total DAU

Calculating Daily Active Users, or DAU, is an important metric for understanding the success of your app. In order to determine your DAU, you must first identify the number of unique new users and the number of unique returning users. Then you simply add them together to figure out the total number of daily active users.

To give an example – if you had 2,500 unique new users and 1,000 unique returning users in one day, then your DAU would be 3,500 that day. Monitoring a product’s DAU is a great way to track user engagement and measure growth in your business over time.

What factors affect Daily Active Users?

Daily Active Users (DAU) can be affected by a variety of factors. Here are some of the factors:

1. User Acquisition:

The more users you acquire, the higher your DAU will be. This means getting the word out about your product or service and making sure the message resonates with your target audience.

2. Engagement:

Once users are acquired, it is important to keep them engaged with the product or service. This could include using push notifications, providing rewards for activity, and creating content that is relevant to their interests.

3. Retention:

Retention is key for maintaining a high DAU. This means providing users with quality experiences that will keep them coming back time and time again.

4. Platform:

Where your product or service is located can also have an impact on DAU. For example, if it is available on a popular platform like iOS or Android, the potential for more users is much higher than if it was exclusive to a lesser-known platform.

5. Competitor Activity:

Be aware of what your competitors are doing and how it could affect the number of daily active users you have. Keep an eye out for new features and updates to their apps that could affect your own DAU.

What are good Daily Active Users?

Good Daily Active Users (DAU) depend on the type of product or service offered. Generally, an acceptable DAU percentage should be between 20-30%. However, it may also go as low as 10% or even higher.

Ultimately, the percentage that is considered “good” will depend on the product or service, as well as how it is being used by its users. For example, an app with a DAU of 25% would be considered good if it is used for communication or entertainment purposes, but may not be as desirable if it is meant for business tasks.

Additionally, the DAU percentage can vary between different user demographics. For example, an app may have a 20% DAU among adult users and a 40% DAU among children. In this case, a 40% DAU may be considered good for the younger demographic.

Daily Active Users Benchmarks

In 2017, Mixpanel released benchmarks to compare a product’s Daily Active User (DAU) to Monthly Active User (MAU) ratio against the industry average. This study measured a user’s activity via any action taken within the product.

For SaaS product managers, having a DAU/MAU ratio of 9.4% or higher puts them in the top half of all products. A ratio of 28.7% or higher puts them in the top 10%.

What are examples of Daily Active Users?

Last week, Snapchat released its quarterly earnings report, revealing that the company has continued to see growth in both users and revenue. In Q3 2021, Snapchat’s daily active users (DAU) rose to 306 million, representing an increase of 23% year-over-year. This comes after the company surpassed 280 million DAU earlier this year.

The surge in users was mainly driven by territories outside of the United States. Globally, excluding the US, user numbers increased by 10 million during the quarter. India showed particularly strong growth in the adoption of the platform, as more and more mobile owners start using the social app.

What are Strategies to increase daily active users?

Here are the strategies to increase daily active users:

1. Build an Engaging and Interactive User Experience:

The foundation of a successful product is an engaging and interactive user experience. Design your app or website to keep users coming back for more, as they’ll be more likely to stick with and use your product if it meets their needs and feels enjoyable to use.

2. Offer Incentives:

Offer incentives such as discounts and rewards to encourage users to come back to your product. This could be anything from free trial periods for new users, discounted subscription prices, or loyalty rewards for frequent users.

3. Personalize Your App:

Personalizing your app or website can help create a unique user experience, which makes them more likely to come back and use it. Consider adding personalization features such as tailored content recommendations, messaging notifications, or custom profile designs.

4. Send Out Reminders:

Reminding users of your product can help them remember to use it. Try sending out email reminders or push notifications to your users, so they won’t forget about it.

5. Improve User Acquisition Strategies:

Focus on improving your user acquisition strategies to bring in new users and convert them into active users. Use tactics such as content marketing, social media campaigns, or search engine optimization (SEO) to reach more potential customers and encourage them to sign up for your product.

6. Monitor User Activity:

Monitor user activity to find out how people are using your product and identify any potential improvements. Use analytics tools such as Google Analytics or Hotjar to analyze user behavior and track metrics such as page views, session times, and bounce rates.

Tools to measure Daily Active Users

Measuring daily active users (DAU) is a crucial metric for any mobile application or website, as it helps measure user engagement and allows businesses to accurately analyze user activity.

There are several tools available to help measure DAU, including analytics services and third-party data measurement companies.

Analytics Services:

Most popular analytics services, such as Google Analytics, Adobe Analytics and Mixpanel, include features specifically designed to measure DAU. These services are typically integrated into the application or website and track user activity over a given period of time.

Third-party Data Measurement Companies:

Third-party data measurement companies like Flurry and App Annie provide detailed user data that can be used to measure DAU. They track user activity across multiple platforms and can provide valuable insights into user behavior.

Log File Analysis:

Log file analysis is a powerful tool for measuring DAU. It allows businesses to track user activity on a granular level, and can provide insight into how users are interacting with the product.  Log file analysis is often used in conjunction with analytics services and third-party data measurement companies.

Custom Tools:

Businesses can also create custom tools to measure DAU. This allows them to track user activity in a way that is tailored specifically for their product or service. Custom tools can provide a more detailed understanding of user activity and can help businesses identify areas that need improvement.

By using the right tools to measure DAU, businesses can gain valuable insight into their user activity and ensure their products are meeting the needs of their users.  This data allows them to identify areas for improvement, optimize their products and services, and improve user engagement.


In order to understand your DAU, you need to track not just total active users but also how often those users are active. This means taking the time to segment your user base and tracking their engagement on a daily basis. Doing so will give you a much better understanding of not only who your most active users are but also what content is resonating with them the most.

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