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Tip: Regular cohort retention analysis helps pinpoint periods of disengagement and improve user experience.
The retention rate measures the percentage of users who continue using your service after a specified period. High retention often signals satisfaction and product relevance, while low retention suggests areas for improvement.
Industry | Typical 30-Day Retention Rate (%) |
SaaS / Software | 70% – 90% |
Mobile Apps | 40% – 60% |
E-commerce | 60% – 80% |
Fintech | 75% – 85% |
EdTech | 65% – 80% |
Note: Rates vary by product type, user engagement, and the quality of onboarding.
Scenario:
Out of 1,000 users who joined a cohort, 800 remain active after 30 days.
Calculation:
Retention Rate = (800 ÷ 1,000) × 100 = 80%
Interpretation:
An 80% retention rate indicates strong user engagement and satisfaction.
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Answers to Frequently Asked Questions
It’s the percentage of users in a cohort who continue using your product after a specified period, such as 30 days.
It helps you track engagement trends and improve user satisfaction and product fit.
Focus on onboarding, product updates, personalized engagement, and support.
Measure retention regularly for new cohorts, typically on a monthly or quarterly basis.
Low retention suggests issues in product value, onboarding, or user experience.