DAU/MAU is the ratio of Daily Active Users to Monthly Active Users—it measures how sticky your product is. If you have 100 MAU and 20 DAU, your ratio is 20%. Higher is better: Facebook is ~60%, most social apps are 20-30%, utility tools might be 10-20%. Low DAU/MAU means users sign up but don't come back—either your product isn't valuable enough or the use case is infrequent.
Track DAU/MAU for products where daily usage is possible and desirable—social apps, productivity tools, communication apps. Don't use it for products with naturally infrequent usage (tax software, travel booking). Focus on improving DAU/MAU after you have Product-Market Fit and want to increase engagement. Pre-PMF, focus on retention first.
Product Management
Daily vs Monthly Active Users