DAU and MAU are counts of unique users active on a given day or month. The ratio between them, DAU divided by MAU, is a common measure of how habitual a product actually is for the people using it.
A higher DAU/MAU ratio means a larger share of a product's monthly users are coming back nearly every day, generally a sign of a genuinely habitual product. A low ratio can mean users only touch the product occasionally, which isn't necessarily bad for every product category, but it's worth understanding what's normal for the specific type of product before reading too much into the number alone.
These metrics matter most for consumer and engagement-driven products. A B2B tool someone logs into once a week to run payroll can be extremely valuable with a low DAU/MAU ratio, so the benchmark for a good number depends heavily on what the product is actually for.
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