How do you determine the rate of retention for a specific product?

Question

Anonymous · Accepted Answer

Retention rate should be the % of users who perform the same thing after X
number of days of exposure to the product. So it should be total number of users
who use a product on day 0 and 7 days after of product launch / total number of
users who used the product at day 0 * 100

Anonymous · Answer

Retention is not just "opening the app." You must define the meaningful action
that signifies value.

Passive: Logging in, opening the app.

Active: Watching a video, sending a message, completing a transaction.

Example (Instagram Reels): A retained user might be defined as someone who
watches at least 60 seconds of video, not just someone who clicks the tab

Anonymous · Answer

Calculate the number visiting the site and the number of people actually buying
the subscription and then renewing it. Then divide the the renewal number by the
number of people who bought the subscription, to get the retention rate

Anonymous · Answer

If it's a subscription based product,  After usage of the product I check how
many users continue with the subscriotion after 7 days, 15days, 1 month, 3
months and 6 month. The % of users who continue to have the subscriotion after
the above time periods are the retained users

For non subscription products, I can check weekly or monthly retention by
finding % of users who come back to product the week or month after using

Anonymous · Answer

First you need to define retention over which period you would like to see - 7
days, 30 days, 60 days, etc
Then you need to calculate number of users doing the expected action at the
beginning of the period and number of users doing this in the end of the period.
The ration between end and beginning is a retention rate.

Anonymous · Answer

retention rate is a subjective metric based on thresholds to identify the 'N'
months that the product was active or being bought actively or being used at a
regular cadence. Once we have the thresholds to the above, we can take a count
of customer actively using the product in the last X months / total customer
(active and inactive both). This would give us retention of product over a
specified length of time.

Anonymous · Answer

I would first clarify the number of days the retention rate needs to be
calculated ...for example 7 days, 14 days, 1 month. Based on the time frame... I
would calculate the user who used the product more than once in the given
timeperiod by number of users

How do you determine the rate of retention for a specific product?

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