Measuring user retention

This is part 4 in a series of articles about measuring Key Experience Indicators (KEIs). In this series I go deeper into the Google HEART framework for large-scale data analysis. The framework was put in place to help choose and define appropriate metrics that reflect both the quality of user experience and the goals of your product. Each article in the series discusses one of the HEART dimensions — Happiness, Engagement, Adoption, Retention, and Task success. Enjoy and use it!

What is retention?

User retention is the continued use of a product or feature. When considering overall retention of using a product, you must accurately define what counts as use. It might be logging in, visiting one page, or performing one key action, up to you. For measuring user retention for a specific feature, think of people who used it once. The metrics we look for will answer the question, ‘Does the feature retain these people as its users?’ User retention is an unbiased behavioral measurement and is therefore trustworthy, valid, and reliable.

Why measure retention?

Retention affects every meaningful metric you measure. When retention is strong, it means users stay for the long term, and that your audience’s needs are met. Measuring user retention provides you with excellent indications of reaching product/market fit and it can help you dive deeper into sub-populations of users such as geography, gender, or ones based on behavior (e.g., weekdays vs. weekend use).

Key mistakes in measuring retention

Only measuring churn. Churn is your leaking bucket of water. While it’s helpful to know and understand churn numbers, I highly recommend taking a more positive approach and look at the right half glass. While your churn might be 5%, why not report 95% retention? Your goal would then be to increase retention rather than decrease churn. Just a different, more positive way, of looking at the same number.

Choosing a wrong time frame. The ideal time frame for reporting retention really depends on your product or service. If you are a family vacation hotel, an annual time frame is more meaningful for looking at retention, whereas a social media app would expect daily usage. Choosing a wrong time frame will…