User Retention Rate Measure

From GM-RKB
(Redirected from User Retention Rate)
Jump to navigation Jump to search

A User Retention Rate Measure is a performance metric that quantifies the percentage of users who continue to use a product or service over a given time period.



References

2024

2023a

  • (Smith, 2023) ⇒ Oren Smith (2023). "10 Customer Retention Metrics & How to Measure Them." In: blog.hubspot.com.
    • QUOTE: Customer retention metrics are factors, or variables, used to measure the likelihood of retaining and attracting customers to your business. These units of measurement are used in various formulas created to determine the performance of business operations in a given period (...)

      It takes time to see how effective your retention strategy is working. To do this, add up the number of customers you had at the beginning of a period, then all the customers that onboarded in between, then the number you had at the end of the period.

      Subtract the number at the end from the newly acquired, and divide that solution by the number of customers you had in the beginning.

      If you have a relatively small customer list, semi-annual or annual tracking will suffice.

      Retention Rate Formula

      Customer Retention Rate = (Customers at the End of the Period) - (New Customers Acquired) / Customers at the Start of the Period

2023b

  • (Paramita , 2023) ⇒ Pragnya Paramita (2023). "3 Ways To Measure User Retention." In: amplitude.com.
    • QUOTE: The three main ways to measure user retention are Return On retention, Return On or After retention, and Return On (Custom) retention. How you measure retention depends on your product, business goals, and customers’ usage patterns.

2023c

  • (FullStory, 2023) ⇒ FullStory. (2024). "User Retention Metrics 101: Measure & Analyze Your Customers." In: www.fullstory.com.
    • QUOTE: In order to calculate your customer retention, you first need to collect some basic data. Begin by adding up the total number of customers at the beginning of a given period.

      Next, add up how many customers were onboarded during that period. Finally, add up how many customers were at the end of that period.

      Then, subtract onboarded customers from those at the end and divide the total number of returning customers by the total customer number at the start of that period and multiply by 100 to get a percentage. This percentage is your customer retention rate.

      Customer retention = (customers at end - customers onboarded) / (customers at start) * 100