RR – Retention Rate

Definition

Retention Rate indicates what percentage of customers remain active over a specific period. A high retention rate is the most important driver of sustainable growth, as acquiring new customers costs 5-25× more than retaining existing ones. In app marketing, Day-1, Day-7, and Day-30 retention are commonly measured.

Formula

Optimization Tips

Create structured onboarding. Use lifecycle emails and in-app messages. Offer loyalty programs and exclusive benefits. Collect regular feedback and respond to complaints. Personalize user experience based on behavioral data.