What is Retention?
The ability of a product or service to keep users engaged and continuing to use it over time.
Detailed Explanation
Retention is the measure of how many users continue using a product over time. It is typically expressed as a percentage of users who return after their first use — Day 1, Day 7, Day 30 retention are common metrics. High retention is the foundation of sustainable growth because acquiring users is expensive; keeping them is where profitability lies. Growth engineering approaches retention systematically: analyzing drop-off points in the user journey, A/B testing onboarding flows, personalizing engagement, and automating re-engagement campaigns. AI agents can monitor user behavior, identify at-risk users, trigger personalized interventions, and continuously optimize the product experience.
Related Terms
Frequently Asked Questions
What is a good retention rate?
Varies by industry. Consumer apps target 20-40% Day 30 retention. B2B SaaS aims for 90%+ monthly retention. The key benchmark is whether retention stabilizes (indicating product-market fit).
What causes users to churn?
Common reasons: poor onboarding, lack of perceived value, product complexity, better alternatives, unmet expectations, or changes in user circumstances.
How can AI improve retention?
AI can predict churn before it happens, personalize re-engagement messages, optimize onboarding based on user behavior, identify power users for advocacy programs, and surface features users haven't discovered.