Retention Rate

Retention Rate measures the percentage of users who continue to use an app over a specific period.

Why it matters

Indicates user loyalty and satisfaction.
Helps in assessing the long-term value of the app.

How to measure

Calculate the percentage of users active at a later time compared to the initial cohort.
Commonly measured over 1-day, 7-day, and 30-day periods.

Details

Retention Rate is a critical metric for mobile engineers and growth teams as it reflects the ability of an app to engage users over time. A high retention rate suggests that users find value in the app, while a low rate may indicate issues with user experience or relevance. To improve retention, focus on personalized content, seamless onboarding, and regular updates that address user feedback.

In the mobile context, retention is often influenced by factors such as app performance, user interface, and the effectiveness of push notifications. Monitoring retention rates can guide product development and marketing strategies to enhance user engagement.

Examples & formulas

For example, if 100 users installed your app on Day 1 and 40 of them are still active on Day 7, your 7-day retention rate is 40%.

Retention Rate = (Number of users active at end of period / Number of users at start of period) * 100

Common mistakes

Ignoring cohort analysis, which can provide deeper insights into user behavior.
Focusing solely on short-term retention without considering long-term trends.