App retention rate is the percentage of users who continue engaging with an app over time. This app metric is typically measured at 30 days, 7 days, and 1 day after users first install the app. App retention rate is calculated by dividing an app’s monthly active users by its monthly installs.
App retention = # of monthly active users / # of monthly installs
Retention rate shows app developers exactly what day in the app lifecycle users begin dropping off. The next step is understanding why users are churning – in other words, what actions are being correlated with low retention users? To learn this, app developers use cohorts, which enables them to leverage user behavioral data to learn how to retain app users.
User retention is an app’s ability to keep users coming back. In order to measure user retention, app developers look at key metrics such as Day 1, 7, 30 retention rate, virality, and social sharing. There are many strategies app developers use to increase app retention, including re-engagement ads, pushing notifications, and utilizing user segmentation tools.
Learn how to increase mobile app retention.