What is a Retention Rate?

A retention rate gives a number to the percentage of users who are still using an app after a certain number of days after install. The figure is calculated by counting the number of unique users that trigger at least one session in one day, then dividing this by the number of total installs within a given cohort.

Why Are Retention Rates Important?

Retention rates help you understand how well your app is performing over time, per user. A higher retention rate is better overall because users who stay active for longer provide more engagement, as well as a bigger monetization opportunity. Retention rates are great for understanding why many users disengage from apps, and where you stand in the grander scheme of app performance. This can help pinpoint what you can improve.

With your analysis, you could look at how retention develops in your app over a 30-day period. If retention drops at a certain point, a goal may be to increase the number of users who are interested and engaged enough to retain past that date. In gaming, this is often the end of the onboarding period. In verticals like e-commerce, you could find out when purchases occur and optimize for that point in time.

In general, retention rates give you a potential insight into the longevity of your app.

Reference: “Adjust,” Retrieved – 23 April 2018