How high is the user retention rate? A detailed explanation of the retention rate formula

　　What is the user retention rate?

In the Internet industry, users begin to use the application within a certain period of time, and after a period of time, continue to use the application is considered to be retained; This part of the user accounted for the current percentage of new users is the retention rate, according to every 1 units of time (example days, weeks, months) to be counted. As the name suggests, retention refers to the "number of users left behind." The retention user and retention rates reflect the quality of the application and the ability to retain the user.

　　formula for calculating the retention rate

Retention rate = Number of subscribers/number of new users *100% (general statistical cycle is days)

Number of users added: The number of users who applied to the newly registered login in the current time period;

Number of logged-in users: The number of users logged in at least once in the current time period;

Active Users: Number of logged-in users-number of new users;

The next day retention rate: The number of new users on the day, the number of users logged in at least once a day;

3rd retention Rate: The number of new users on the day, the number of users logged in at least once in the next 3 days;

7th retention Rate: The number of new users on the day, the number of users logged in at least once in the next 7 days;

15th retention: Number of users added on the day, users who have logged in at least once in the next 7 days, at least once in the next 8th to 14th days

　　The role of retention rates

In the Internet age, whether the new mobile phone chess game or the traditional MMORPG, also regardless of pay or not, all need to maintain the user's active degree, once the user's active degree drops, it means the user's departure or loss. Based on this, the concept of "retention" can be used to analyze the application or the service effect of the website, whether can retain the user. Therefore, the retention rate reflects actually a conversion rate, that is, from the initial instability of users into active users, stable users, loyal users of the process, as the retention rate of the statistical process of continuous extension, you can see the changes in different periods of users.

The reason for this is that because retention is the target of studying new users, that is, to study the life cycle of a group of users at a certain point in the next few days, weeks, months, and to get a macro grasp of the length of the user's life cycle and the scope for improvement.

So here's a question, why should we study new users? As just said, we want to macro-observation of the user's life process situation, then our best way is to start from the user import period, the so-called import period is the user into the game, this place our analysis in fact, a promising, Because the user enters the game originates from the different channel, through the different marketing means pulls into the game, like this we cross analysis, through the user's later retention situation can grasp the channel quality from one level, for instance, the payment, the stickiness, the value quantity, the CAC cost.

Generally speaking, the retention rate of such indicators is required long-term continuous tracking, and according to the version update, promotion and many other factors combined analysis, trying to find the best cycle of players to develop appropriate strategies to improve quality.