#ActiveUserImpact An active user has registered for your software and has used it within a reasonable timeframe. This timeframe is critical to measuring active users that companies often overlook. Many businesses focus solely on reporting "monthly active users," but this can be misleading in understanding how customers interact with the software.

To illustrate this point, let's consider tax software. While businesses may use it regularly, the average consumer only uses the software yearly to file taxes. However, they are still considered active users since most people only need to use the software once a year, even if they don't interact with it for the rest of the year. Therefore, it's essential to determine the appropriate timeframe for measuring active users to understand how customers use the software.