Retention Rate

Retention rate measures the percentage of users or customers who continue to use a product or service over a given period. It's a key performance indicator that helps businesses understand customer loyalty and satisfaction.‍

Why It Matters

- Retention rate is crucial in AI Product Management and general Product Management as it indicates how well a product keeps users engaged and satisfied.
- A high retention rate often reflects successful product features and user experience, impacting decision-making regarding product improvements and marketing strategies.
- It is significant in assessing long-term product viability and planning for customer acquisition costs.‍

How It’s Used

- In product roadmaps, retention rate helps prioritize features that boost user engagement.
- During sprints or team discussions, it aids in evaluating the success of new features or updates.
- As part of AI workflows, it informs predictive analyses on user behavior and lifetime value.‍

Related Terms

1. Churn Rate
2. Lifetime Value
3. Customer Churn‍

Additional Resources

- Retention Rate | Definition and Overview
- 10 key customer retention metrics in product management
- The Ultimate Guide to User Retention for Product Managers

AI Product Management Context

Revo helps PMs by providing insights into user behavior, which can increase retention rates by highlighting areas for improvement in product features and user experience.