What is good retention

For many products, metrics often describe the customer acquisition goal in enough detail to provide sufficient management guidance. In contrast, the metrics for customer retention do not provide enough color to be a complete management tool. As a result, many young companies overemphasize retention metrics and do not spend enough time going deep en

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Cohort retention: The first is customer retention, which shows the % of customers that remain subscribers in every cohort. The second is revenue retention, which shows the % of revenue in each cohort that remains the longer the cohort stays active. Ideally, revenue retention should be higher than customer retention, because subscribers that stick a... See more

Retention measures breadth - the percentage of users who are still active in a given time period. But it doesn’t answer the critical question - how active are they within that time period?

As these strategies develop, I expect that the growth metrics underlying the most successful Consumer SaaS companies will come to resemble those of the most successful Enterprise SaaS companies — specifically, a material portion of growth for the outperformers will be attributed to negative churn.