What is Retention Rate (RR)?
The percentage of users who continue using an app after their initial install, measured at specific time intervals (Day 1, Day 7, Day 30).
Retention rate measures the percentage of users who return to use an app after their initial install, calculated at specific time intervals. The most common measurements are Day 1 (D1), Day 7 (D7), and Day 30 (D30) retention rates. This metric indicates how well an app engages users and provides long-term value, making it crucial for understanding user satisfaction and app stickiness.
Why It Matters
Retention rate is one of the most important mobile app KPIs as it directly correlates with user lifetime value (LTV) and return on advertising spend (ROAS). High retention rates indicate product-market fit, user satisfaction, and sustainable growth. Poor retention rates suggest issues with onboarding, content quality, or user experience that need immediate attention.
How to Calculate
Retention Rate = (Users who returned on Day X ÷ Total users who installed on Day 0) × 100%. For example, if 1,000 users installed an app on Monday and 300 returned on Tuesday, the D1 retention rate is 30%. Rolling retention and bracket retention are alternative calculation methods.
Industry Benchmarks
| Category | Average | Good Performance |
|---|---|---|
| D1 Retention (Games) | 25-35% | 35%+ |
| D7 Retention (Games) | 10-20% | 20%+ |
| D30 Retention (All Apps) | 5-10% | 10%+ |
Best Practices
Optimize onboarding flow to demonstrate app value quickly. Implement push notifications strategically to re-engage users. Create habit-forming features and daily rewards. Continuously test and improve core app functionality. Monitor retention cohorts to identify trends and seasonal patterns.
Examples
A fitness app achieves 40% D1, 25% D7, and 15% D30 retention through daily workout reminders and progress tracking. A mobile game maintains 35% D1 retention with compelling tutorial and early rewards, dropping to 18% D7 as casual players churn.
Notes
Retention rates vary significantly by app category, with games typically having different patterns than utility or social apps. Industry benchmarks should be compared within similar app categories and target demographics. Retention analysis should consider cohort behavior and seasonal effects.