Monthly active user (MAU)

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‘Active’ means performing a meaningful action, not just logging in, but doing something that reflects real usage, like sending a message, creating a project, or completing a transaction.

Why MAU matters

For SaaS and consumer apps, MAU is shorthand for product traction. But the angle differs:

• Consumer apps: MAU shows reach and virality.
• SaaS products: MAU tells you whether paid seats are being used, and whether adoption is spreading inside customer accounts.

For investors and boards, MAU growth in SaaS is valuable only if it correlates with expansion revenue and retention.

SaaS-specific nuance

In SaaS, not all MAUs are equal:

• Seat utilization – If a customer buys 1,000 seats but only 400 are active monthly, that’s a red flag for churn risk.
• Depth of use – A sales team logging in once a month isn’t the same as them running reports weekly.
• Expansion signals – Rising MAUs across departments often foreshadows upsell opportunities.

This is why SaaS operators often track active seats vs. contracted seats alongside MAU.

MAU vs. DAU

• DAU (Daily Active User): best for habit-forming tools like Slack, Notion, or Zoom.
• MAU (Monthly Active User): better for SaaS products where usage is naturally less frequent (e.g., payroll software).

The DAU/MAU ratio helps measure stickiness. For example, a DAU/MAU of 0.7 means most users return nearly every day; a 0.1 ratio may still be fine for products designed for monthly use (like invoicing tools).

Pitfalls to avoid

• Vanity MAUs: Counting logins as ‘active’ when true engagement is shallow.
• Masking churn: MAU may stay flat even if old customers leave and are replaced by new ones.
• Misalignment with revenue: A free-tier app can show soaring MAUs without corresponding ARR growth.

AI prompt

What to provide the AI beforehand

• Current MAU count and trend (past 3–6 months)
• DAU/MAU ratio (if tracked)
• Internal definition of “active” (e.g., file uploaded, report generated)
• Breakdown of MAU by customer segment (free vs. paid, department, geography)
• Notes on product releases, campaigns, or pricing changes during the period
• Connection to revenue: % of MAU on paid tiers or linked to ARR