User Retention Rate is the percentage of users who continue to engage with your product or service after a specific period. It’s a key metric for measuring customer loyalty and long-term product value.
Divide the number of users who are active after a set time period by the number of users at the start of the period, then multiply by 100.
If you had 1,000 users sign up in January and 300 were still active in March, your User Retention Rate after two months would be (300 / 1,000) × 100 = 30%.
A good User Retention Rate depends on your industry and product type, but higher rates generally indicate satisfied and loyal users.
A low User Retention Rate suggests users are not finding value in your product, leading to churn and limited growth.
A clear and simple onboarding process helps users understand the value of your product quickly.
Send tailored messages or offers based on user activity to encourage return visits.
Analyze when and why users stop engaging so you can address pain points early.
