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Stickiness of a website
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or online app involves using
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the monthly active user and daily active user count together.
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The ratio of the daily active users compared to
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the monthly active users is called stickiness.
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The stickiness ratio is a very useful tool for several stakeholders, such as investors,
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to know if the website or app has
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a potential for growth or either on the trajectory, for growth.
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Essentially, stickiness tells us if
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the customers are coming back to the website or app every day,
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or rather, sticking around to actually engage with it.
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So, a DAU by MAU ratio of 0.5 indicates
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that the average user is engaged or using the app 15 out of 30 days that month.
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The common benchmark for social networking site is 0.5,
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while for gaming apps,
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it is 0.1 to 0.2,
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while most other apps strive to achieve a stickiness ratio of 0.2.
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So, why is stickiness important?
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It is a useful KPI for management and investors.
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Investors want to know if this app or website
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has the potential to make money in the future.
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For example, if the plan is to introduce advertising into the app,
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the potential evaluation will depend on whether the app
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has a large number of users that keep coming back to it.
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In other words, they need to know the number of
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active users will likely increase over time.
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