Why use it
The DAU:MAU Ratio measures engagement frequency and therefore the stickiness of your product. If you want to increase engagement it is a good metric to track your success.
The DAU:MAU Ratio is calculated by dividing daily active users by monthly active users.
On average a company has 100 (unique) active users per day and 1.000 (unique) active users per month.
As a month has about 30 days this means the users were active on average 3 times per month (30÷10).