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