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App retention rate

What is app retention rate?

App retention rate is the percentage of users who use an app over a specific period. It is one of the important app metrics and can be calculated for 1 month, 7 days, or even 1 day after the users install the app. Retention rate also helps app developers to track how long the users continue using the app and how many users have discontinued it.

Why maintaining a high retention rate is important

A higher retention rate signifies the success rate of an app. The following are the main reasons to maintain a high retention rate:

  • It increases the profit.

    Users, when they continue to use your app for a long time, contribute to your company's long-term revenue and brand building.

  • It enhances brand recognition.

    An increase in app retention rate directly impacts brand building as app users ensure their long-term commitment to the app and share their positive experiences with others.

  • It is a cost-effective user acquisition approach.

    Acquiring new app users typically requires more resources and time than encouraging existing users to continue using your app. Simply by offering a feasible app and occasional discounts/offers, a brand can keep the buyers engaged.

How to calculate app retention rate

App retention rate for a month can be calculated as follows.

App retention rate = (Total number of monthly active users/ Total number of monthly installs) X 100

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