Retention Rate

What is the retention rate?

Retention rate is one of the most important mobile app KPIs for advertisers and developers. It refers to the percentage of users who continue using an app over time. 

When to measure retention rate?

The retention rate is measured over different periods after the app install, commonly including:

  • Day 1 retention
  • Day 7 retention
  • Day 30 retention 
  • Day 90 retention

By measuring retention on the initial days after app install, developers find out about the first impression their app leaves on users. On the other hand, long-term retention demonstrates the app’s ability to drive regular, loyal users. 

How to calculate the retention rate of an app?

There are different ways to calculate the retention rate of an app. One common formula is to divide the number of users opening the app on day X by the number of users who installed and used the app on day 0 and multiply the result by 100. 

retention rate formula

For example, if there were 1000 users on D0, and 150 of these users continue using the app by Day 7, the Day 7 retention rate would be 15%.

How to increase the app retention rate?

Here are some best practices that help app developers increase retention rates: 

  • Optimizing the onboarding process. Simplify the initial user experience to help users understand the app quickly.
  • App personalization. Tailor the app experience to individual preferences for increased engagement.
  • Leveraging social features. Include social elements for users who enjoy collaborating, competing, or sharing.
  • Utilizing push notifications. Use timely and relevant notifications to re-engage users and remind them of the app’s value.
  • Acquiring quality users. Focus on attracting users most likely to continue using the app.