DAU Growth Rate
Date created: Oct 12, 2022 • Last updated: Oct 12, 2022
What is DAU Growth Rate?
DAU Growth Rate is the increase in Daily Active Users over a period of time, typically represented in a percentage. It can be a good indicator of successful sales and marketing efforts, as well as an indicator of good product-market fit.
DAU Growth Rate Formula
How to calculate DAU Growth Rate
Your business has 5,000 Daily Active Users at the beginning of the month. By the time you reach the month end, this number has increased to 5,600. This indicates that your DAU Growth Rate is (5,600 – 5,000) / 5,000 which is 12% DAU Monthly Growth Rate.
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How to visualize DAU Growth Rate?
Growth Rates are best visualized with line charts. This lets you identify where your DAU growth rate has increased or decreased, allowing you to act on discrepancies.
DAU Growth Rate visualization example
DAU Growth Rate
Line Chart
DAU Growth Rate
Chart
Measuring DAU Growth RateMore about DAU Growth Rate
DAU Growth Rate measures changes in Daily Active Users (DAU) over time by comparing the DAU of a given time period with that of a previous time period. It is usually expressed as a percentage and can be a good indicator that your sales and marketing strategies are attracting high-value customers that are a good fit with your product.
Take care not to equate this metric with monetary success, because it could be growth of user base without growth in revenue, especially if your product follows a freemium pricing model. When this number stagnates, it might be an indication to revise your strategy and even reassess your target audience. Generally, track DAU Growth Rate along with other growth metrics such as MRR Growth Rate and ACV Growth Rate to conduct a fuller analysis of your growth strategy success.
Recommended resources related to DAU Growth Rate
Here’s an article addressing some of the nuances of DAU Growth.Metric Toolkit
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