Retention Metrics
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Retention metrics measure the percentage of users who continue to use a product over a specific period, indicating product stickiness and satisfaction.
Retention is a critical metric for any product team because it shows how well your product keeps users coming back. The most common way to measure this is the retention rate, which tells you what percentage of users are still active after a certain period. To calculate retention rate, you typically choose a time frame—such as one week, one month, or 90 days—and measure how many users who signed up during a specific period are still active at the end of that time.
Rolling retention is another approach, focusing on whether users return to your product on or after a particular day, rather than strictly on that day. This provides a broader view of user loyalty, since it counts users who may not be active on the exact day but return later.
Return rate measures how often users come back to your product after their first visit. This can be calculated over different timeframes, such as daily, weekly, or monthly, and helps you understand the frequency of repeat usage.
These retention metrics together help you identify how sticky your product is and whether users are finding ongoing value in what you offer.
If 1,000 users sign up on Day 0 and 250 of them use the product again on Day 7, the 7-day retention rate is 25%. This indicates that a quarter of new users are still engaged after one week;
If out of 1,000 users who signed up on Day 0, 400 return at any point between Day 1 and Day 30, the 30-day rolling retention rate is 40%. This shows a larger group of users are coming back at least once within the month, even if not on a specific day;
If 600 out of 2,000 users who visited in January come back at any time in February, your monthly return rate is 30%. This highlights how many users find enough value to revisit after their first month.
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