Daily Active Users represent the overall number of users that use your app in one day or within a given time period. This metric is frequently utilized by businesses whose application is anticipated to be employed by users daily, for example, gaming apps. An active app user is one who has installed or perhaps downloaded an app and has further engaged with it, though the actual definition of an active interaction can vary between verticals or brands.
The target active users are determined through PUID like IDFA for agreeing iOS 14+ users, email, user ID, cookies for web users, or other methods used if one way fails to work. For example, the interaction of an online banking app may be described as a transfer, while the same for an eCommerce app may be described as adding items to a cart. SaaS business typically depends on the actual workings and use of the software as a measure of activity.

How to Calculate Daily Active Users (DAU)
When it comes to DAU, it sounds quite simple at the first sight, but the real challenge is in determining what is considered an ‘activity.’ To make this process clear and manageable, here’s a step-by-step approach:
- Set Your Definition of an Active User
Determine exactly what can be considered as activity on the part of the user. For instance, this could involve clicking a button, swiping your finger or more specifically scrolling on your app. - Determine the Frequency of Engagement
Since DAU is what we are calculating here, the frequency here is daily, implying that you will assess unique user engagement on a specific day. - Collect and Analyze the Data
With your chosen analytics tool, track activity filtering for unique users and sum up the results to provide the number of users who were active at least once during that day.
Let’s put this into perspective with an example:
- Active User Definition: A user who performs certain actions – clicks, swipes, or scrolls.
- Frequency: Daily (DAU).
Here’s what happens on a given day:
- User 1 clicks a button, closes the app, then log back in to the app and clicks it again.
- User 2 opens the app and does nothing more to it.
- User 3 enters and interacts – they scroll, swipe or click a button.
The Result:
Our DAU count for the day is 2. Here’s why:
- User 1 is treated as an active user (although it has been listed only once), but if they have multiple actions, they will be recorded only once.
- User 2 does not qualify as ‘active’, therefore, is not included in the numbers.
- User 3 falls under the category of active user hence is considered.
Your DAU definition will always depend on your business objectives as well as the type of application that you are developing. One piece of advice that is good for one business may not be good for another and that is okay. Define your active user criteria based on how you understand growth and success.
Why Should You Use it?
DAU is far from being just a sugar coating number, it is actually one of the crucial barometers that reflects the health of your app or the product you are building. Here’s why tracking DAU can make a big difference:
- Engagement Indicator: DAU reflects how often users return to your app, showing how valuable and engaging it is. A high DAU means users are consistently interacting with your app, while a low DAU signals potential issues.
- Identifies Trends: Tracking DAU helps spot trends, such as the impact of a new feature launch or shifts in user behavior, allowing you to make informed decisions.
- App “Stickiness”: DAU helps assess how “sticky” your app is, revealing how well it retains users over time. Combined with MAU, it offers insight into long-term user engagement.
- Guides Strategy: DAU informs product and marketing strategies, helping you optimize user experience, increase engagement, and drive revenue growth.
- Business Health: DAU is a key metric for evaluating your app’s growth potential and attracting investors, making it an essential part of your business’s performance tracking.
How DAU Relates to Other Metrics
DAU vs. MAU: Comparing DAU (daily active users) with MAU (monthly active users) helps you understand how frequently users engage with your app over a longer period.
Stickiness Ratio: The DAU/MAU ratio, also known as the stickiness ratio, indicates user loyalty and retention. A higher ratio suggests users are engaging with the app more consistently.
Churn Rate: DAU can help identify churn by tracking daily user declines. A drop in DAU signals that users are disengaging, allowing you to address retention issues early.
Challenges in Measuring DAU
- Defining “Active” Users: The challenge of setting an appropriate definition of “active,” as this can vary greatly depending on the app’s purpose.
- User Behavior Variations: Different user behaviors (e.g., passive vs. active users) can skew DAU numbers if not accounted for properly.
- Data Accuracy: Ensuring accurate tracking, especially with cross-device users or those using different platforms, to avoid undercounting or double-counting.
Limitations of DAU
- Limited View of Engagement: DAU focuses only on daily activity, not capturing long-term user behavior or deeper engagement.
- Skewed by Irregular User Patterns: DAU can be misleading if users engage sporadically or in bursts, without reflecting true, sustained usage.
- Overlooks Passive Users: It doesn’t account for users who may not perform specific actions but still engage in valuable ways (e.g., viewing content or receiving notifications).
- Varying Definitions of “Active”: The definition of an “active” user can vary, leading to inaccurate counts if not properly defined.
- Short-Term Fluctuations: DAU can be affected by temporary factors (e.g., marketing campaigns), making it hard to spot consistent engagement trends.
- Doesn’t Identify Churn: DAU doesn’t directly show who is dropping off, making it difficult to understand retention issues without other metrics.
- Lack of Context: DAU needs to be combined with other metrics, like MAU or retention rates, for a fuller picture of app performance.
The DAU/MAU Ratio
When combined with Monthly Active Users (MAU), the DAU/MAU ratio becomes a powerful tool for assessing how many of your monthly users are actively engaging with your app on a daily basis.
This metric not only helps you predict future traction and potential revenue, but it also provides valuable insight into your product’s worth by showing how frequently users return. A high DAU/MAU ratio indicates strong user retention and engagement, highlighting the true value your app delivers to its users over time.
Here’s how it’s calculated:
And here’s a practical example:
Imagine you had 3,500 DAUs and 12,000 MAUs in August. In that case, your stickiness ratio for the month would be 29%.
This is an excellent position to be in! A stickiness ratio of 20% is typically considered good across industries, while anything above 25% is regarded as exceptional. A 29% ratio shows that your app is highly engaging, with users returning consistently.
How to Increase DAU?
Increasing Daily Active Users (DAU) can be achieved through a variety of strategies designed to enhance engagement and encourage users to interact with your app consistently.
- Deep linking allows you to send users directly to specific content or features within your app, making it easier for them to find what they’re looking for and engage quickly. By using deep links in emails, SMS, or other marketing channels, you can drive users back to the app with a clear call to action.
- Email and SMS campaigns can also be effective tools for boosting DAU. Sending personalized reminders, updates, or special offers via email or SMS can help bring users back to your app. These messages should be targeted and relevant, creating a sense of urgency or exclusivity to prompt action.
- In-app messages are another excellent way to engage users. By delivering timely, relevant content or offers while users are already inside the app, you can encourage continued interaction. Whether it’s a prompt to complete a task or discover new features, in-app messages help keep users engaged without interrupting their experience.
- Push notifications are a powerful tool to remind users of your app, especially when they haven’t used it in a while. Personalized and relevant push notifications, such as updates on new content or special promotions, can drive users to open the app daily. However, it’s important to avoid over-saturating users with notifications, as this can lead to opt-outs.
- Running user engagement campaigns such as challenges, loyalty programs, or limited-time promotions can incentivize users to engage more frequently. These campaigns encourage users to return regularly to earn rewards or stay updated on the latest events, fostering more active participation.
- Creating a sense of community within your app can help drive DAU. Features like forums, social sharing, or user-generated content allow users to interact with each other, building loyalty and engagement. When users feel like they belong to a community, they are more likely to return daily.
Bottom Line
To increase Daily Active Users (DAU), it’s important to focus on strategies that drive regular engagement. Retention plays a vital role in maintaining steady activity, as keeping users engaged ensures they return daily. Encouraging consistent use is essential for sustainable DAU growth.
Personalized experiences, such as tailored content or notifications based on user behavior, make users feel more connected to the app. Push notifications and in-app messages are also effective reminders, offering value like updates or new features to draw users back. Frequent updates keep the app fresh, providing reasons for users to engage with new tools or content regularly.
Incentives like daily challenges, loyalty points, or exclusive content can encourage users to interact with the app every day. Creating a sense of community through social features or user-generated content builds loyalty and fosters engagement. These strategies help users stay connected, ensuring they return to the app consistently.