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User Retention

  1. Learn User Retention with the Practica AI Coach

    The Practica AI Coach helps you improve in User Retention by using your current work challenges as opportunities to improve. The AI Coach will ask you questions, instruct you on concepts and tactics, and give you feedback as you make progress.

  2. Why Retention Matters

    Retention is crucial for a business's long-term success, as it is more cost-effective to retain existing customers than acquire new ones. Retention also leads to increased revenue, customer loyalty, and positive word-of-mouth marketing.
    • Pinterest logo
      The Best Metric for Determining Quantitative Product Market Fit

      Jeff Chang, Growth Tech Lead, Pinterest

      Cohort retention rate is the best metric to determine product market fit for subscription products. It measures the percentage of users from a cohort who remain long term users. It minimizes false positives and negatives because it tracks actual user behavior over time, instead of Surveys. As product improvements are made, newer cohorts will have higher retention rates, showing progress towards Product Market Fit. Once several cohorts level off at a benchmark retention rate for comparable products, Product Market Fit has been achieved.

  3. How to Measure Retention and Set Benchmarks

    Measuring retention requires analyzing customer behavior and setting benchmarks based on industry standards. Metrics such as churn rate, customer lifetime value, and repeat purchase rate can provide insights into retention performance.
    • Goldman Sachs logo
      Measuring User Retention

      Tomer Sharon, Head of User Research & Metrics, Goldman Sachs

      Tomer highlights the importance of accurately defining usage and the benefits of measuring retention, such as indicating Product Market Fit and analyzing user sub-populations. Common mistakes in retention measurement are discussed, including only focusing on churn and using inappropriate time frames. The article introduces three retention metrics: retention rate, upgrade rate, and mean time to churn. Tomer also recommends actionable steps to take based on retention data, such as identifying user values, understanding reasons for churn, and solving top churn reasons.
    • Airbnb logo
      What is good retention?

      Lenny Rachitsky, Product Lead, Supply Growth, Airbnb

      Lenny worked with Casey Winters to reach out to twenty of the most experienced growth practitioners and had them two questions: • What do you consider GOOD and GREAT user retention (at 6 months)? • What do you consider GOOD and GREAT net revenue retention (at 12 months)?

  4. How to Improve Retention

    Improving retention involves understanding customer needs and preferences, providing exceptional Customer Service, personalizing communication, offering loyalty programs, and continuously evaluating and adjusting retention strategies. Building a strong brand and creating a positive customer experience are also essential for improving retention.