Once people are using your product, you need to do everything in your power to keep them engaged and receiving value, or they might churn (and leave your product prematurely). Your ability to keep users engaged and actively using your product is described as Retention. Your retained customers will generate revenue, both by paying for the existing s
... See moreAndy Budd • The Growth Equation: How Early Stage Startups Can Build a Powerful Engine for Growth
- Since improving retention drives monetization - meaning you make more money over a designated period of time - it also shortens your payback period.
Brian Balfour • The One Growth Metric that Moves Acquisition, Monetization, and Virality
Retention is the opposite of churn. Some types of businesses focus more on one or the other. Retention often comes as renewals; churn is cancellation of services or lack of renewal. Both are usually presented as percentages and can be representing active users or MRR (monthly recurring revenues).
Patrick Vernon • Venture Capital Strategy: How to Think Like a Venture Capitalist
The best way to measure the acquisition effect is usually by the percent of organically acquired users and the customer acquisition cost going down over time (within a network until a certain point).
Tanay Jaipuria • Breaking Down Network Effects
“Retention rate is the best measure of product-market fit , because it is a behavioral measure of repeat usage. Specifically, you want to focus on the “terminal value” of your retention curve. If your retention curve drops to zero, then you don’t have product-market fit. To achieve product-market fit, you want your retention curve to flatten out to... See more