Don’t Be Fooled by DAU/MAU — It Hides What Really Matters
- Gregory Henson
- 12 minutes ago
- 2 min read
At Henson Venture Partners, we work with high-growth startups every day — and we constantly see founders default to one engagement metric: DAU/MAU (Daily Active Users divided by Monthly Active Users).
While DAU/MAU offers a quick gut check, it’s often misleading. Why? Because it compresses all your user engagement into one average. It hides the nuance. It hides the insight. And most importantly, it hides the opportunity.
So what should you be looking at instead?
Enter the Power User Curve
The Power User Curve is a 30-day histogram showing how many days per month users were active. Instead of blending everyone into a single number, it reveals the distribution of engagement — and helps you spot your power users.
1️⃣ The Smile Curve: High Engagement Heaven
A curve that looks like a smile — high bars on both ends — indicates two things:
Lots of users try your product once.
A meaningful segment uses it almost every day.
That right-side bulge is your gold mine. Products like Facebook show this right-leaning “smile” curve, with over 60% of monthly active users logging in daily. This is a sign of true product-market fit.
2️⃣ The Left-Weighted Curve: Low-Frequency, High-Value
Not every product needs daily users. A left-heavy curve (most users show up 1–2 days a month) isn’t a red flag — it’s just a different model.
Think of LinkedIn. People use it sporadically, but when they do, it matters — job hunting, networking, hiring. For businesses like this, engagement per session is the key, not session frequency.
3️⃣ Watch the Curve Over Time: Track Product-Market Fit
The real power of the curve? Watching it shift.
If your new feature or UX change moves a cohort’s activity curve to the right, that’s a signal — you’re driving deeper value. On the flip side, stagnation (or regression) might mean your roadmap needs a rethink.
Products like Uber and Thumbtack use localized Power User Curves to assess engagement by region, helping them understand market-specific traction and network effects.
4️⃣ Customize the Curve to Fit Your Business
There’s no one-size-fits-all view. The 30-day model is a baseline — but you can (and should) tailor the curve:
For a B2B SaaS tool, try a 7-day curve based on weekday use.
For a marketplace, chart seller actions, not just logins.
For a content platform, measure content creation, not just consumption.
Look past superficial metrics. What’s the action that signals your user is getting value — or better yet, creating it?
Final Takeaway: Engagement Isn’t an Average
Great founders don’t just want more users — they want more power users. The Power User Curve helps you find them, serve them, and build your business around them.
At Henson Venture Partners, we encourage every portfolio company to track what actually matters. DAU/MAU is a footnote. Engagement depth, power user behavior, and cohort evolution — that’s where real insight (and real revenue) lives. See examples in our attached PDF:
Comments