Definition
The percentage of users who remain engaged with the app or continue their subscription over a specific period. High retention leads to higher LTV and reduced reliance on constant acquisition.
Retention Rate = Users Active at End of Period / Users at Start of Period x 100. Day N Retention = Users Active on Day N / Users Who Installed on Day 0 x 100.
Day 1: 40-60%. Day 7: 25-40%. Day 30: 15-25%. Monthly subscription renewal: 85-95%. These vary by category. Track your own trends — improvement over time matters more than hitting absolute benchmarks.
Delivering core value quickly and repeatedly. Users who experience your app's primary benefit within the first session retain dramatically better. For a meditation app, that means completing a meditation. For a fitness app, finishing a workout. Time-to-value is everything.
They are inverses. Retention Rate = 100% - Churn Rate. If your monthly retention is 92%, your monthly churn is 8%. Small retention improvements compound into large LTV gains because they extend the average subscriber lifetime exponentially.
A backend mechanism that limits how often users can trigger certain subscription-related actions (e.g., restore, trial start, promo redemptions) within a set time frame. This helps prevent abuse, fraud, and system overload.
When a previously churned or lapsed subscriber returns and resumes their subscription. Reactivations are a part of lifecycle marketing and often driven by email/push campaigns, pricing incentives, or product improvements.
Revenue generated on a consistent, repeatable basis through subscription renewals. Recurring revenue is the foundation of subscription businesses and a key metric for forecasting, valuation, and capital efficiency.
The percentage of in-app purchases or subscriptions that are refunded due to user dissatisfaction or platform policy. High refund rates can signal poor value perception, billing issues, or onboarding problems and may impact platform standing or reported revenue.
The continuation of a subscription after a billing period ends, either manually or through auto-renew. Renewals are a core component of recurring revenue and serve as key milestones in a user's lifecycle.
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