What is Monthly Active Users ?
An app usage metric representing the total number of users that visit the app in 30 days. Each unique consumer who comes to your website and interacts with your product every month is considered an active user of your product (or service). MAU is a critical engagement metric because it measures the number of unique customers each month.When it comes to measuring success, many companies look at monthly active users (MAU). Beyond traffic, downloads, or installs, this number displays how many active users are using your product. MAU can inform you about a company’s general health, the success of a marketing effort in acquiring new users, the level of interest in a product or service, the retention rate, the churn rate, the growth rate and potential, and the revenue growth and potential.
A customer’s lifetime value (LTV) and cost per acquisition (CPA) can both be based on the number of monthly active users (MAUs). Because of its simplicity, MAU is a great way to compare different services. However, there are drawbacks, and some have proposed doing away with MAU altogether. Retirement may not be the greatest option, but you should be aware of some key considerations before you make the decision. Using different metrics to calculate MAU differs from company to company. Critics of MAU use this argument to support their assertions that MAU is a skewed KPI compared to its competitors. Supporters of MAU claim that it can only provide a complete picture of active users when combined with other relevant measures.A quantitative variable, MAU merely records the volume of traffic as one number. Any component that evaluates the quality, intensity, or depth of the users’ experience is excluded. Accounting standards do not recognize MAU because it lacks consistent criteria for defining important terms such as "active" and "user."As a result of this debate, different companies have defined the phrases differently. For example, if a site visitor has login credentials, they are considered to be a user.
Other businesses have different standards for who is allowed to be an active user must be met.Monthly active users are more difficult to track down than they appear. Even though practically all Internet firms measure and report on the number of monthly active users, there is still no industry standard for the definition of active users.As an illustration, some companies define active users as people who have just come to their website, while others include only registered users in their MAU numbers. As a result, each business has its unique methods for determining the number of monthly active consumers.