User Retention Rate
Percentage
User Retention Rate measures the proportion of users who continue using the software after a certain period, signifying long-term user engagement and satisfaction. It’s crucial for assessing the lasting appeal of the product and the effectiveness of retention strategies. High retention rates are indicative of a successful user experience and product-market fit, while low rates suggest areas for improvement in user engagement or product features.
Formula
(Number of Users Still Active at End of Period / Number of Users at Start of Period) * 100
Example
If 1,800 out of 2,000 users are still active after a month, the retention rate is (1800/2000)*100 = 90%.