Retention Rate

Retention rate measures how many users/customers come back or stay active. Learn cohort retention and levers.

retention ratecohort retentionuser retention curve

Definition

Retention rate is the percentage of users/customers who remain active or subscribed over time, often measured by cohorts.

Answer-first summary

Retention Rate: Retention rate is the percentage of users/customers who remain active or subscribed over time, often measured by cohorts.

Formula

Retention (%)

Retention = Retained Users / Users in Cohort

  • Retained Users: Users active at a later time
  • Users in Cohort: Users who started in the same period

Week 0 cohort 1,000 users; week 4 active 320 → 32% week-4 retention.

How to improve

  • Improve activation quality (right users, right value).
  • Add habit loops (notifications, reminders, workflows).
  • Reduce product friction and improve performance.

Common pitfalls

  • Measuring retention without defining ‘active’.
  • Mixing cohorts and segments.

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FAQ

What’s the difference between retention and churn?
Retention is what you keep; churn is what you lose. They’re complements.
Should I track D1/D7/D30 retention?
Yes—short-term and long-term retention show different issues.

Topic hub

Explore the full cluster for stronger context, benchmarks, templates, and comparisons.

Retention & Expansion Hub — NRR, GRR, Churn, Expansion MRR

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