Product
User Retention
Definition of
User retention refers to the ability of a business to keep its customers engaged, satisfied, and loyal to its products or services. It is a crucial metric for any company, as retaining existing customers is far less expensive than acquiring new ones. For instance, a social media platform can improve user retention by continually adding new features, providing personalized recommendations, and offering rewards for user engagement. Similarly, an e-commerce website can retain users by providing a seamless shopping experience, offering discounts and promotions, and providing excellent customer service. By focusing on user retention, businesses can establish a loyal customer base and increase revenue in the long run. It involves analyzing user behavior and preferences, identifying areas for improvement, and implementing strategies to keep users engaged and satisfied.
A popular metric for measuring growth of SaaS and digital products over time. User retention is often evaluated on a daily or weekly basis.
