What is Daily Active Users ?
A metric that shows how many users visit an app in one day. DAU is an excellent indicator of an app’s success because it tells developers how involved their users are in the experience. However, DAU should be used in conjunction with other metrics to get the most out of it. In general, a user must use or view a product in some way to be deemed active. If you define active users in a particular way, the prerequisites for being an active user will vary. Everyone in the SaaS industry is searching for the same thing: a large, loyal customer base.
Measuring your app or website’s daily traffic can offer you a fair idea of how many people use your product and, hopefully, find it useful. Your platform’s active users are all prospective customers. Your company’s success depends on keeping and serving existing consumers. You can see how many people are interested in your service by keeping an eye on your DAU, but it’s your job to keep them interested, so they return day after day, week after week. Tracking your DAUs over time might serve as a useful benchmark for your team once you’ve established a baseline. Remember, though, that this is NOT the only figure to keep an eye on as you mature.
It is simple to foster a growth mentality in your team by tracking your daily active users (DAUs) and setting targets based on that data. As your DAU numbers rise, it’s tempting to get complacent and think you’re doing well. However, if the business isn’t booming, be wary of charts that appear to be going up and to the right all the time. Active users may not always equate to those who are engaged. However, if the phrase doesn’t clearly define your app or website’s goal, it’s impossible to know if your consumers are happy. Let’s say your SaaS Company is built to facilitate the sharing of content among its users.
Your DAU may show growth in logins but ignore the reality that no one is sharing anything if it just measures people who have signed in but not if they have shared material. When people are not exchanging information, you will lose them. Do not compare statistics because "active user" is defined differently by each organization; therefore, keep this in mind when analyzing them. Facebook counts people as active if they participate in any way. A "like" button clicked in a comment area of an online post does not always signify that the user is logged in to their account.