Retention Rate

July 9, 2018

Retention rate is the percentage of users who come back to your app in order to perform a certain action after installing your app.

What percentage of your users are launching and using your app a week after install? 30 days after install? 90 days after? Retention rate answers this question.

Why is Retention Rate Important?

According to a Bain & Company report, on average, improving retention rates by even 5% increases profits by more than 25%.01

Retaining users then is crucial in driving revenue for your app and your organization.

How Do You Improve Retention Rate?

So how do you improve retention rate? How can you keep users coming back to your app? First off, you need actionable user data, and for that you have to start tracking retention cohorts.

Instead of lumping all your users into one bucket, breaking them into cohorts and tracking their behavior over time can give you valuable insights into onboarding flows, user experience, and product/market fit.

But secondly, you need an effective engagement strategy. The only way to retain users and keep them coming back is to engage them: send out push notifications or in-app notifications, send out emails and offers. Communicate with them and personalize your communication.

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