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 Harvard Business School report, on average, improving retention rates by even 5% increases profits by 25 – 95%.

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.

Read More About Retention Rate

A 10% increase in user retention can increase the value of a business by more than 30%. Forget awareness. Forget ...
Smart mobile marketers know that user retention is the lifeblood of a successful app. In fact, a 10% uptick in ...
User retention is the defining metric for successful mobile apps. The value of incorporating deep links into user retention strategies ...
Back to Glossary
Related Keywords
Bounce Rate

Bounce rate is the percentage of visitors who navigate away from a particular website after viewi...

Read More
Average Revenue per Daily Active User (ARPDAU)

ARPDAU is a mobile marketing metric used to measure how well your monetization strategies are wor...

Read More
Session Length

Session length is the amount of time spent by a user inside your app during a session. It begins ...

Read More
Average Revenue Per User (ARPU)

The ARPU is average revenue per user and refers to the revenue that a monetized user helps you ge...

Read More

8,000+

55 Billion

1 Billion

10 Billion