Retention Rate

Retention Rate or App Retention rate measures the percentage of users who continue to use the app for a longer time. It is typically calculated over a period of time (week, month or quarter). App retention rate is calculated by dividing an app’s monthly active user by its monthly installs.

Retention Rate = No of Monthly active users/ No of Monthly installs

Though User Acquisition is an important step for the success of an app, user retention helps the app to grow in the long run. Mobile app user engagement rates and

Importance of Mobile app retention rate:

Retention rate helps understand user behavior and analyze data based on cohorts. App developers can also understand why users are churning. The mobile app retention rate shows exactly at what point the users begin to drop off.

Retaining new app users isn’t an easy task hence, app developers use various strategies to improve user retention. In turn, this can help increase the LTV of the user. It can also give insights into overall app performance and the current user base.

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