Daily Active Users (DAU): Why This Metric Matters in SaaS

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What is DAU?

Daily Active Users (DAU) is a metric that measures the number of unique users who engage with your SaaS product or app on a given day. It provides a real-time view of product engagement and user stickiness.

DAU is one of the most important indicators of product usage, especially in product-led growth (PLG) models where consistent usage drives retention and expansion.

Why DAU is important in SaaS

How is DAU calculated?

DAU = Number of distinct users who performed a meaningful action in your product during a 24-hour period. This might include logins, feature usage, or key workflows completed.

What counts as “active”?

It depends on your product. For example:

  • In a project management tool – creating or completing a task
  • In a messaging app – sending or reading a message
  • In a BI dashboard – logging in and exploring a report

Define active users based on meaningful engagement tied to your core value proposition.

DAU vs. MAU: Why the ratio matters

DAU/MAU ratio shows how often users return. A DAU/MAU ratio of 20–30% is common for B2B SaaS. A ratio over 50% means your product is deeply embedded in users' workflows.

This metric is sometimes referred to as "stickiness." The higher the ratio, the more indispensable your product is.

How DAU ties to retention and churn

A drop in DAU can be an early sign of churn risk. Tracking DAU trends by segment, cohort, or lifecycle stage helps customer success teams act early.

Tools like Customerscore.io use DAU to feed into customer health scores and trigger alerts when activity drops significantly.

How to increase DAU

  • Personalize onboarding to get users to their first value fast
  • Use in-app nudges and tooltips to guide feature discovery
  • Automate reminders via email or push when usage drops
  • Measure time-to-value and reduce friction in key workflows

FAQ

How often should I track DAU?

Daily — especially for usage-based pricing or PLG models. Use trends, not just point-in-time numbers.

Is DAU useful for all SaaS products?

Not always. For some tools, weekly or monthly active users (WAU, MAU) may be more meaningful if usage is naturally infrequent.

Can DAU be inflated?

Yes — avoid counting automated scripts or repeated logins. Track only meaningful human engagement.

What’s a good DAU/MAU ratio?

30–40% is solid for B2B. Above 50% signals strong engagement and retention.