Business Metrics
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Retention
The share of users who come back after a given time. It carries repeat behavior and habit, not a one-off sale.
Detailed explanation
A cohort table shows whether people who arrived in the same week are still active at week 1, 4, and 12. A single “monthly active” number hides that curve.
On a content product, retention may be email opens or return visits. In ecommerce, repeat-purchase rate is close.
Churn is the other face of retention. Scaling media without asking why people leave is filling a leaking bucket.
Frequently asked questions
- What is good retention?
- It depends on the product. A daily habit app and a once-a-year purchase do not share a curve.
- How do you improve it?
- Product value, reminders (email/push), habit loops, and closing the reasons people leave.
Related terms
Internal links for the topic cluster — read these concepts together.
- Churn RateChurn Rate is the metric that expresses the percentage of customers who stop using a brand's service or product within a given period; it's a critical indicator of sustainable growth in subscription-based businesses.
- Cohort AnalysisCohort Analysis is a method of comparing the behavior of groups of users who engaged with a brand within the same time period or around the same event, such as signup or first purchase, over time.
- AARRRPirate Metrics: Acquisition, Activation, Retention, Referral, Revenue. A five-rung growth frame that stops teams staring at one vanity number.
- LTV (Customer Lifetime Value)LTV is the estimated total revenue a customer will generate for a company over the course of their relationship with the brand; it's a core metric for evaluating long-term marketing return.
- Email MarketingSending news, offers, or teaching through a permissioned list you own. It is not a rented blast; it stands on delivery, relevance, and an easy way out.
- ActivationThe moment a new user first gets real value—the “aha”. Signing up is not activation; the first meaningful action is.