Retention Rate
What is Retention Rate?
Retention rate is a metric that measures the percentage of users who continue to engage with an app, game, or website over a specific period. It is a key indicator of user loyalty and satisfaction, showing how well a platform can retain its users.
How is Retention Rate Typically Measured?
The retention rate is often measured over different periods, such as Day 1, Day 7, Day 30, and Day 90.
By measuring retention rate in cohorts, apps, games, and websites can determine strategies to improve retention.
How to Calculate The Retention Rate?
A basic example to calculate retention rate for an app is to divide the number of users that interact with an app on Day X by the number of users who installed and opened the app on Day 0. Then, multiply the result by 100.
Retention Rate = Users that interact with an app on Day 0 x 100 / Day 0 app installs & opens
For example, if there were 10,000 users on Day 0 and 2,500 users continue using the app by Day 30, the Day 30 retention rate is 25%.
How To Increase Retention Rate?
There are some common ways to increase retention rate, including:
- Utilizing marketing channels: Apps, games, and websites can use a combination of push notifications, emails, text, and social media to build a deeper relationship with users and deepen engagement.
- Optimizing initial onboarding and ease-of-use: It’s important to optimize the initial onboarding for users to ensure the app, game, or website is easy to understand and use. If there is any confusion, retention rates can drop.
- Acquiring high quality users: Through a refined marketing strategy, apps, games, and websites should focus on acquiring users that are most likely to continue using their app.
- Personalize the user experience: Personalization can be a powerful way to build long term user engagement.