User retention refers to the ability of an app to maintain its number of users over a specific period. It measures the percentage of users who continue to use the app after their initial installation. A high user retention rate indicates the app’s ability to engage and provide ongoing value to users, an indicator of the app’s financial viability.
The following is the formula for determining the user retention rate:
User Retention Rate = (Number of Users at the End of a Period / Number of Users at the Start of a Period) x 100
So, for example, if an app has 1,000 users at the beginning of the month (start) and 800 users at the end of the month (end), do the following to get the retention rate:
From these operations, you will get a retention rate of 80%.
Having a large number of loyal users (high retention) provides the following advantages to app developers and app publishers:
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