1. What is Retention Percentage?

Retention percentage measures the proportion of users or customers that continue to use a service or product over a given period. It's a key metric for understanding customer loyalty and product stickiness.

2. How Does the Calculator Work?

The calculator uses the retention percentage formula:

Where:

• \( \text{Retained} \) — Number of users/customers retained
• \( \text{Total at Start} \) — Initial number of users/customers

Explanation: The formula calculates what percentage of the original user base remained active or subscribed after a specific period.

3. Importance of Retention Calculation

Details: Retention rate is crucial for businesses to understand customer satisfaction, product-market fit, and long-term viability. High retention often correlates with better profitability.

4. Using the Calculator

Tips: Enter the number of users/customers retained and the total number at the start of the period. Both values must be positive numbers, and retained cannot exceed the starting total.

5. Frequently Asked Questions (FAQ)

Q1: What's a good retention percentage?
A: This varies by industry, but generally 80%+ is excellent for monthly retention, while 90%+ is outstanding for annual retention.

Q2: How does retention differ from churn?
A: Retention is the percentage that stayed, while churn is the percentage that left (Churn = 100% - Retention %).

Q3: What time period should I measure retention for?
A: Common periods are daily (D1), weekly (W1), monthly (M1), quarterly, or annually, depending on your business model.

Q4: Should I count reactivated users in retention?
A: Typically no - retention usually measures continuous usage. Reactivations might be tracked separately.

Q5: How can I improve retention?
A: Focus on onboarding, product quality, customer support, and regular engagement with your users.