What Are the Different Uses of a Retention Ratio?

In the Internet industry, users start using the application for a certain period of time, and users who continue to use the application after a period of time are considered as retained users.

User retention

These users accounted for newly added

1. Law of addition and subtraction

2. More rational, less emotional

3. Treat users as idiots rather than fools

4. Recommend premium content and block spam ^[1]

   Retention rate = number of new users logged in / new users * 100% (the general statistical cycle is days)

   New users: The number of new users who logged in to the application during a certain period of time (usually the first full day);

   Number of logged-in users: The number of users who have logged in at least once after logging in to the application;

   Nth day retention: Refers to the proportion of users who are still logged in on the Nth day after the new user day

   Day 1 retention rate (ie "second retention"): (the number of users added on the day, the number of users who are still logged in on the first day after the date of addition) / the total number of new users on the first day

   Day 2 retention rate: (the number of users added on the day, the number of users who are still logged in on the second day after the date of addition) / the total number of users added on the first day;

   Retention rate on the 3rd day: (the number of users who are still logged in on the 3rd day after the new day among the new users added on the day) / the total number of new users on the first day

   Retention rate on the 7th day: (the number of users who are still logged in on the 7th day after the new day among the new users on the day) / the total number of new users on the first day

   Retention rate on the 30th day: (the number of users who are still logged in on the 30th day after the new day among the new users added on the day) / the total number of new users on the first day;

   In the Internet era, whether it is an emerging mobile chess and card game or a traditional MMORPG, regardless of whether or not to pay, it is necessary to keep the user's activity. Once the user's activity decreases, it means that the user leaves or loses. Based on this, the concept of "retention" can be used to analyze whether the service effect of the application or website can retain users. Therefore, the retention rate reflects a conversion rate, that is, the process of converting the unstable users into active users, stable users, and loyal users. With the continuous extension of this retention rate statistics process, we can see that Changes in users over time.

   The reason for this is that retention is aimed at studying new users, that is, studying the life cycle of a group of users at a certain point in time in the following days, weeks, and months. From Take a macro view of the length of the user's life cycle and the room for improvement.

   So here comes the question, why do we study new users? As mentioned earlier, we need to observe the life progress of users in a macro view. Then our best way is to start from the user import period. The so-called import period is when the user enters the game. Our analysis is very useful here because The game comes from different channels, and is pulled into the game through different marketing methods. In this way, we can analyze the quality of the channel from one level through the user's later retention, such as payment, stickiness, value, and CAC cost.

   Generally, such indicators as retention rate need to be continuously tracked for a long time, and they must be analyzed according to many factors such as version update and promotion, and try to find the best cycle for players to formulate corresponding strategies to improve quality.