Retention Rate

Retention rate shows the share of users who remain active across periods. It reveals whether value persists beyond initial adoption.

Retention rate is the percentage of users/accounts still active at the end of a period relative to the start cohort.

Use cohort curves to see decay and where they flatten. High, stable retention underpins sustainable growth and compounding economics.

Retention rate is the percentage of users still active at the end of a period relative to the start cohort. Plot cohort curves monthly to understand decay and where the curve flattens. High, stable retention underpins all sustainable growth and ensures marketing investments compound over time.

Track active users across periods.

Divide end‑of‑period active users by the start‑of‑period cohort and express as a percentage.

500 at start, 380 at end → 76%.

Present a cohort example with monthly measurements to show where the curve stabilizes.

Comparing different cohorts, using cumulative retention, or counting reactivations as retained can mislead.

Benchmarks vary by category; healthy cohorts often flatten after 3–6 months.

Healthy cohorts often flatten after 3–6 months depending on category and use case.

Plot cohort curves monthly and use survival analysis for more precise insights.

Retention pairs with churn rate, cohort analysis, and stickiness to describe engagement.