Tracking and measuring successful retention intent

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When it comes to retaining users, it’s key to know what’s working (and what’s not). Tracking and measuring the right retention intent gives you a clear view of how users are engaging with your product over time and helps you determine how to increase user retention.

Let's talk about the tools and techniques that will help you measure what matters and fine-tune your customer retention strategies.

Key metrics for measuring retention
If you want to increase user retention, you need the right metrics and how to calculate them. Let's look at how to measure each one.

Customer Retention Rate (CRR)
To calculate the CRR:

Select a cohort of users (for example, users who signed up in January)
Measure the number of users in that group who are still active after a given period (such as 30, 60, or 90 days)
Use this formula:
Retention rate = (Number of active users at the end of the period / Total users at the chief vp compliance email list beginning of the period) x 100

Turnover rate
To calculate the churn rate:

Identify the number of users who stopped using the product within a given period
Use this formula:
Churn rate = (Users lost during the period / Total users at the beginning of the period) x 100

Read also: How to Build a Churn Prediction Model: A Complete Guide

Customer Lifetime Value (CLV)
Calculate CLV with this formula:

Knowing CLV allows you to determine how much to invest in retaining customers, ensuring that resources are spent wisely.

4. Net Promoter Score (NPS)
To calculate NPS:

Survey customers on a scale of 0 to 10 about how likely they are to recommend your product
Subtract the percentage of detractors (those who rate from 0 to 6) from the percentage of promoters (those who rate from 9 to 10)