The number of *unique users who take a defined action within a product on a given day*. It is a key engagement metric used to measure the activity and growth of a product.
## Why DAU Matters
- **Growth Indicator**: Helps track user engagement trends and product adoption over time.
- **Benchmarking**: Allows comparison against competitors or internal targets.
- **Operational Planning**: Helps estimate infrastructure, support, and operational costs based on active user load.
- **Seasonality Insights**: Reveals fluctuations in user activity due to trends, holidays, or campaigns.
## Limitations of DAU
- **Potential Vanity Metric**: DAU alone may not reflect actual business value if not tied to meaningful user actions ([[Vanity metrics- Misleading Indicators of Success]]).
- **Definition Matters**: A broad or misleading definition (e.g., counting logins instead of meaningful engagement) can inflate numbers without providing useful insights.
- **Lack of Retention Insight**: DAU does not inherently show user stickiness or long-term retention.
### Related
[[Monthly Active Users (MAU)]]