What is MAU and Why is it Important?
Understanding the importance of Monthly Active Users (MAU)
What is MAU?
Monthly Active Users (MAU) is an engagement metric referring to the number of unique users that have interacted with a product or service within a given month. As a key performance indicator (KPI), MAU is an important aspect of measuring the health of many businesses.
The definition of terms like “users” and “active” might vary from business to business, since there is no industry standard. But, below are some general guidelines of how they are determined
Users: when a business is determining MAU, a user is an individual that has performed some sort of in-app or on-site action during a 30-day period. This action could include logging in, completing a specific conversion, or executing a certain number of interactions. This individual will only be counted once regardless of how many interactions they have.
Action: Any business can determine how they want to define an action. But, in many cases, an action included in MAU can be opening an app, logging in, or performing a set number of interactions with a product or service.
Why is MAU important?
For most businesses, it is important to know how users interact with their product or service. A high MAU can generally indicate a good rate of product engagement and positive retention over a certain period of time.
By measuring MAU, a business can also determine the effectiveness of its marketing strategies, product iterations, and customer experience. MAU can also be used to determine other engagement related KIPs including:
On top of the many internal uses for MAU, it can also be used by outside sources to determine the overall health of a company. Public organizations like Facebook and Twitter regularly publish their MAU numbers in order for investors to view the performance of their user base.
Why Kubit Uses MAU
Kubit uses MAU as the key metric to determine pricing for our customers. Using MAU as a basis for pricing gives Kubit’s customers cost predictability and freedom to use all of the collected data transparently. Other vendors in the Product Analytics space would typically charge per data volume which leads to unpredictable costs and sometimes would force users to start sampling their data. Kubit looks to avoid these issues by providing an easy, scalable, MAU based solution to pricing.
To learn more about Kubit’s services and how we calculate our pricing, click here.