Definition
Retention rate is the share of users who are still active, or still paying, after a set time.
For paying customers, retention is the flip side of churn. If 5% churn in a month, 95% are retained. For apps, teams also track user retention. That's the share of new users who come back on day 1, day 7 or day 30.
To measure it, pick a group, such as everyone who signed up in one week. Then count how many are still active after the time you chose.
Why it matters
Good retention means people keep finding value. Poor retention means they try the app and drift away. Feedback from early users helps you find the moment they lose interest, so you can fix it.
Example
1,000 people install your app in the first week of May. A week later, 300 of them open it again. Your day-7 retention for that group is 30%.
Related terms
- Churn rate Churn rate is the percent of customers who stop paying or stop using a product during a set time, such as a month.
- Customer feedback loop A customer feedback loop is the cycle of hearing feedback, acting on it, and telling people what changed.
- Product-market fit Product-market fit means your product meets a real need so well that people stay, pay and tell their friends.
Learn more
Updated by the Synthiya team. See all terms.