User Retention

User Retention

User Retention measures how many users continue to engage with your product over time. Here’s everything you need to know: what it is, why it matters, how to calculate it, and how to improve it!

Analyze your User Retention
Request a demo

What is User Retention?

User Retention is the percentage of users who return and continue to use your product, website, or app over a defined period. It indicates how successful your business is at keeping users engaged after their first visit or signup.

What is User Retention?

Why Is User Retention Important?

User Retention is essential for long-term growth. Acquiring users is only the first step – retaining them drives higher lifetime value, brand loyalty, and profitability. High User Retention signals product-market fit and customer satisfaction.

Optimize your User Retention
Request a demo

How to Calculate User Retention

To calculate User Retention, divide the number of users who continue to use your product at the end of a period by the number of users you had at the beginning of that period. Multiply by 100 to express it as a percentage.

User Retention (%) = (Retained Users ÷ Users at Start of Period) × 100

How to Calculate User Retention

The User Retention Formula:

User Retention (%) = (Retained Users ÷ Users at Start of Period) × 100

Example of User Retention in Action

If you started the week with 1,000 users and 600 of them returned to use your app by the end of the week, your weekly User Retention Rate would be 60%.

Optimize Your User Retention with OWOX BI

Optimize Your User Retention with OWOX BI

OWOX BI lets you analyze retention by cohort, channel, and lifecycle stage. Discover why users stay, when they drop off, and what drives re-engagement – so you can increase long-term loyalty.

Start free today
Request a demo

Start your free trial today and gain full control over your User Retention!

What Is a Good User Retention Rate?

What Is a Good User Retention Rate?

A good User Retention Rate depends on your product type and industry, but 30–60% weekly retention is often considered strong in apps and SaaS. Higher retention shows strong product value and user satisfaction.

What Is a Bad User Retention Rate?

What Is a Bad User Retention Rate?

Low User Retention – especially if most users drop off after one visit – suggests weak onboarding, unclear value, or poor product experience.

Best Practices for User Retention

Deliver a Great First Experience

Make onboarding fast, intuitive, and valuable – so users immediately see how your product solves their problem.

Use Personalization

Tailor content, messages, and recommendations based on user behavior to keep the experience relevant and engaging.

Re-Engage Inactive Users

Send timely emails, push notifications, or offers to bring users back when activity drops.

Optimize Your User Retention with OWOX BI

Common Mistakes to Avoid with User Retention

Don’t ignore churn indicators or assume active users will stay. Failing to track cohorts, personalize experiences, or follow up with inactive users leads to preventable loss.

Need a Better Way to Track Your Marketing Performance?
Improve your User Retention
Request a demo

Read About User Retention on Our Blog

No items found.

Related Marketing Terms You May Also Like

No items found.

Rediscover Your Data Analytics with OWOX BI

Gain full visibility into your marketing performance and make smarter, data-backed decisions

Try OWOX BI Today
Request a demo