Definition
Retention Rate
Retention rate measures the percentage of users who continue using your app after a specific period (Day 1, Day 7, Day 30). It's a key indicator of product-market fit.
Retention rate tells you how well your app keeps users engaged over time. Industry benchmarks vary by category, but typically Day 1 retention is 25-40%, Day 7 is 10-20%, and Day 30 is 5-10%.
Both Apple and Google consider retention signals in their ranking algorithms. Apps that retain users well tend to rank higher, creating a positive cycle of visibility and growth. Strong onboarding is the most important factor in early retention.
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Related Terms
Churn Rate
Churn rate is the percentage of users who stop using your app over a given period. Lower churn means higher retention, better LTV, and more sustainable growth.
Daily Active Users (DAU)
Daily Active Users (DAU) measures the number of unique users who engage with your app on a given day. It's a key engagement metric that influences app store rankings.
Lifetime Value (LTV)
LTV estimates the total revenue a user will generate throughout their relationship with your app. It's the key metric for determining how much you can spend to acquire users profitably.
Further Reading
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