Retention rate
The correct definition depends on the product. Activity-based retention measures return behavior; customer retention measures accounts not lost; revenue retention measures recurring revenue preserved. Teams should define the starting cohort, qualifying return action, observation period, and treatment of reactivation. Retention is most useful as a curve or cohort comparison rather than one isolated percentage.
What is Retention rate?
Retention rate is the percentage of an eligible user or customer group that remains active, subscribed, or otherwise retained after a specified period.
Why it matters
The correct definition depends on the product. Activity-based retention measures return behavior; customer retention measures accounts not lost; revenue retention measures recurring revenue preserved. Teams should define the starting cohort, qualifying return action, observation period, and treatment of reactivation. Retention is most useful as a curve or cohort comparison rather than one isolated percentage.
Example
Of 1,000 users who activated in January, 320 perform the core action again in week four, giving 32% week-four retention.