What is MAU?
A key performance indicator (KPI) used by social networking sites and other businesses to determine how many unique users have visited a website in the previous month is called monthly active users (MAU). Websites typically utilise a username, email address, or identification number to identify monthly active users.
MAU serves as a foundation for computing other website metrics and aids in assessing the overall health of an online business. MAU is also helpful for evaluating the success of a company's marketing initiatives and evaluating the experiences of both current and potential clients.
How to calculate monthly active users?
It is necessary to specify what is meant by "active" in order to compute the monthly active users. In general, this term relates to meaningful engagement with the product or service, albeit it may change based on the product or service being measured.
An individual who logs in, posts, likes, or comments on a social media platform once a month is considered an active user. However, someone who plays the game or uses its features could be considered an active user of a gaming app.
Next, determine how many people fit that description. To count the unique people interacting with your product, you can utilise analytical tools or run a database query.
Sort the gathered information to find distinct users who interacted throughout the month, with your offering. No matter how many interactions a user had within that time, this step guarantees that they are only tallied once.
Because a number of variables might affect the metric's accuracy, calculating MAUs can be challenging. For instance, you might need to take into consideration the fact that several users use your service or product on the same device in order to prevent overcounting. For your business, throughout time, make sure that the MAU calculations are accurate and comparable by establishing a regular reporting period and methodology.
What are the advantages of using MAU’s
Easy to calculate and understand
Being simple to compute and comprehend is one of the main benefits of utilising MAUs as a KPI. In contrast to more intricate metrics like net promoter score or customer lifetime value, MAUs only need little data tracking and analysis.
MAUs are a useful indicator for companies of all sizes and sectors because of this simplicity. Monitoring MAUs can be easily integrated into current systems and processes; it doesn't require complex analytical tools.
MAUs' simplicity also makes it easier to explain the measure to stakeholders. It will be simple for staff members and investors who are unfamiliar with more complicated KPIs to understand and interpret MAU statistics, facilitating more transparent discussions and assessments of platform performance and user engagement.
Shows user growth & overall business health
Monitoring MAUs over time allows you to determine if your user base is expanding or contracting. This can be a useful tool for gauging the accomplishment of product launches, marketing campaigns, and other expansion projects.
Monitoring MAUs can also assist you in assessing the general health of your company. MAUs may indicate that your company is expanding steadily if they are rising steadily.
However, if MAUs are falling, it can indicate that your company is having trouble and that you need to review your approach.
Using this knowledge to inform strategic decision-making can be beneficial. If you're thinking about entering a new market or launching a new product, for instance, monitoring MAUs can help you decide if certain decisions make sense.
What are the limitations of using MAU?
No standardized or universally accepted definition
Standards used by companies to calculate MAU’s vary. Furthermore, there are no industry-wide standards for defining important metrics like "active" and "user."
An active user, for instance, might be someone who checks onto the platform at least once every month, according to one company's definition. On the other hand, a different business might characterise an active user as someone who uses their app to do a specific task once a month. MAUs can lead to unfair comparisons between rivals.
It may not accurately represent actual user engagement
Once a month logins to a platform or app don't tell you how often or deeply people interact with the product or find value in it. MAUs may therefore be a relatively imprecise indicator of user engagement. To obtain a more comprehensive view, you might need to include additional significant data, including the amount of time spent using the app or particular activities performed.
How to increase MAU?
Push Notifications
Push notifications, or alerts sent by an application even when it is closed, can help companies make sure that consumers recall their name. They are among the most effective methods for encouraging users to come back to an app, but they can also be one of the easiest ways to lose users if not used properly. As a result, picking the ideal frequency for push notifications is essential.
Boost Engagement and Retention
An app can boost user engagement in a number of ways, like by consistently offering pertinent and beneficial material and promptly responding to questions or comments. Generally speaking, higher MAU numbers are correlated with higher app engagement.
In-App Messages
Users are more likely to stick with your app longer if it better suits their requirements and preferences.
Even while in-app messages don't usually contain urgent calls to action, they are nevertheless important notifications to get. They might include notifications about version updates, declined payments, or issues with the app.
By segmenting your audience according to region, preferences, usage, or history, you can ensure optimum relevance by employing customised messages that include links to personalised information and real-time updates.
