Retention Rate in user research is a metric that measures the percentage of users who continue to use a product or service over a specific period of time. It indicates how well a product or service is meeting user needs and maintaining user engagement.
Synonyms: User Retention, Customer Retention, Stickiness, User Loyalty Metric
Retention Rate is a crucial metric in user research because it provides valuable insights into the long-term success of a product or service. A high retention rate indicates that users find value in the product and are likely to continue using it, while a low retention rate may signal issues with user satisfaction or product-market fit.
To calculate Retention Rate, use the following formula:
Retention Rate = (Number of Users at End of Period / Number of Users at Start of Period) x 100
For example, if you start with 1000 users and end with 800 after a month, your retention rate would be (800/1000) x 100 = 80%.