Retention
How well users/customers keep coming back. Strong retention compounds growth and is often a better lever than more acquisition.
Definition
How well users/customers keep coming back. Strong retention compounds growth and is often a better lever than more acquisition.
More context
Retention measures whether users keep receiving value over time. It is one of the most compounding growth levers because it improves lifetime value and makes acquisition more efficient.
Why it matters
Poor retention turns acquisition into a leaky bucket. Great retention makes almost every other growth effort more effective.
How to use it
Define retention windows appropriate to your product (e.g. weekly active), segment retention by ICP, and test changes that improve ongoing value.
Common pitfalls
Using the wrong retention window, or chasing acquisition volume while retention stays weak.
Related terms
- Activation — The moment a user experiences the core value (“aha moment”). In AAARRR, it’s the step where the user becomes meaningfully active.
- AAARRR — A customer lifecycle model (also called “pirate metrics”): Awareness, Acquisition, Activation, Revenue, Retention, Referral. Used to find bottlenecks and choose what to improve next.
- KPI (Key Performance Indicator) — A measurable number used to guide decisions and evaluate progress. The first step in the process is choosing a KPI that can be measured periodically.
- Bottleneck — The biggest constraint limiting growth right now. The growth team finds the bottleneck, solves it using the process, and then moves on to the next one.