UR

Metric Name

User Retention

Metric Family

Recurring Revenue

Metric Definition

Ability of a company to keep its users over a period of time. It's a critical metric that indicates the long-term health and sustainability of a business, as retaining customers is often more cost-effective than acquiring new ones.

Formula

User Retention = Number of users at the end of the period / number of users at the start of the period

Application

Through an analyzation of retention rates, companies can identify which features are most valued by users and which areas need improvement. Highlights strategies that are successful in retaining customers. High user retention rates indicate stable or growing revenue.