What Is the DAU/MAU Ratio in SaaS?

One important statistic for assessing user engagement and product “stickiness” is the SaaS DAU/MAU ratio, or Daily Active Users to Monthly Active Users ratio. It shows what proportion of monthly active users are also daily active users of the product. A greater DAU/MAU ratio suggests that customers are enjoying the product and coming back frequently, which is important for the expansion and retention plans of SaaS businesses. SaaS organizations can better assess the health of their product and user base by using the DAU/MAU ratio. 

Businesses may be prompted to solve problems and enhance the customer experience if a low ratio suggests churn or low engagement. A high ratio, on the other hand, indicates great user engagement and product stickiness, enabling businesses to concentrate on expansion and growth.

For SaaS solutions, a good DAU/MAU ratio often falls between 20% and 50%. From 20% to 50% of your monthly active users (MAU) are also daily active users (DAU), according to this data. However, depending on the type of SaaS product, this range could change.

Because customers may not need to interact with the product on a regular basis, a DAU/MAU ratio of 10% to 20% is commonly thought to be suitable for B2B SaaS products.

Higher DAU/MAU ratios (30% to 50%) are typically anticipated due to the more frequent use of B2C SaaS products. A DAU/MAU ratio that is continuously above 50% can be a sign of a product that consumers value and use often.

For SaaS companies to track user engagement and product stickiness, the DAU/MAU ratio is an essential measure. Businesses can maximize their user retention and growth plans by comprehending the subtleties of the ratio and its consequences for various product categories. For SaaS apps that aren’t utilized often, the DAU/MAU ratio may be misleading even though it can occasionally be a useful sign of user engagement. This is particularly valid for business-to-business and seasonal products.

For example, a B2B accounting tool used weekly or monthly will unavoidably have a far lower DAU/MAU ratio, even with high user involvement. Therefore, evaluating the health of these products only based on the DAU/MAU ratio could provide a false impression. The specific context and usage patterns of the product must be taken into account before drawing conclusions based only on the DAU/MAU ratio. 

Here are five strategies you can use to improve your DAU/MAU ratio: 

• Put Acquisition and Retention First: Keeping a high DAU/MAU ratio requires striking a balance between attracting new users and retaining existing ones. Try to implement acquisition and retention strategies to ensure consistent user engagement.
• Identify Your Ideal Clientele: It’s critical to comprehend your grupie docelowej.. Determine which users are the most active by looking at their profiles and behavior. Attracting and retaining people who meet your target user profile will increase your DAU/MAU ratio.
• Address Retention Issues: Identify and analyze drop-off points in the customer journey. By addressing the reasons why customers discontinue using your product, you may enhance retention and your DAU/MAU ratio.
• Observe and Examine: Keep an eye on your DAU/MAU ratio to analyze trends. Look for developments and trends that can improve user engagement and retention.
• Always Evaluate: Maintaining a good DAU/MAU ratio requires constant effort. Aim for expansion and retention, regularly assess your tactics, and adjust your strategy based on user data and market dynamics.

While tracking DAU/MAU is helpful, it is more beneficial to use data from multiple sources because one source cannot offer a comprehensive analysis. Retention rate shows customer satisfaction, whereas daily or monthly engagement shows an app delivers value consistently. Information on its ability to draw in and keep devoted customers who return often is provided by tracking DAU to ensure it increases proportionately to and increases in MAU.