What is Active User?
Active User refers to people who regularly use products or services in the customer lifecycle.
The most important features that distinguish active users from other users are; a certain period and a meaning-dependent use. There are daily, weekly, and monthly active users.
1. Daily Active Users (DAU): Users interact with the product or the service on a daily basis.
2. Weekly Active Users (WAU): Users interact with the product or the service on a weekly basis.
3. Monthly Active Users (MOU): Users interact with the product or the service on a monthly basis.
Why We Measure Active Users
Brands monitor active users to gain an understanding of how many people use their website or app on a daily, weekly, or monthly basis. This accurate calculation benefits brands by helping them measure growth, track consumer behavior patterns and improve customer engagement.
Remember that each active user wandering around your website or application is a potential customer for you to convert. Measuring active users can help you understand how many potential customers you have to engage and convert. Calculating monthly active users is important for many businesses because it is an indication of whether the business’ retention rate is healthy or not. But, more than looking and tracking active users what is needed – is to track the performance and growth of businesses.
What's The Difference: Users vs. Active Users?
Active users are calculated by counting each user uniquely. So, if a single user is active multiple times daily, they will be counted as one. However, an application also has inactive users who have installed the application but have not used it for the selected period. Counting active users allows businesses to differentiate between active and inactive users within an app.
How To Measure Active Users
– Define the parameters for identifying an engaged user.
– Specify the time frame of interest for analysis, such as a day, week, or month.
– Gather data and calculate the total count of distinct users who fulfill the requirements for an active user during each designated time period.