Conversion Optimisation
Retention Rate
Plain English
How many users keep coming back.
Definition
glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term rate is the percentage of users who continue to use a product or return over a given period of time.
In practice
Used to measure how well a product keeps users engaged and coming back after initial use.
In context
The shape matters more than the number. A curve that falls steeply and then flattens shows a core of users who found value; one that keeps falling shows nobody did.
The reality
glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term is often a better indicator of product success than glossaryAcquisitionAcquisition is the process of attracting new users or customers to a product, service, or platform.Open glossary term.
Compared with
Retention Rate vs Churn Rate
They are complements: one counts who stayed, the other who left. glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term frames the conversation around delivered value; glossaryChurnChurn is the rate at which users stop using a product over a given period. It highlights where value is not being sustained and where users are dropping off.Open glossary term frames it around loss. Teams behave differently depending on which they report.
FAQ
Common questions
A few practical answers to the questions that usually come up around this term.
What is retention rate?
glossaryRetentionRetention measures how well a product keeps users over time by continuing to deliver value. It is a key indicator of product success and long-term viability.Open glossary term rate is the percentage of users who return over time.
Why is retention rate important?
It shows whether users find ongoing value in a product.
How do you improve retention rate?
By delivering consistent value and reducing glossaryFrictionFriction refers to anything that slows users down or makes it harder for them to complete a task. It can be caused by poor design, unnecessary steps, unclear messaging, or technical issues.Open glossary term.
How is retention rate calculated?
By comparing returning users to the original user base.
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