Retention fundamentally refers to the percentage of an app user who remain active. In other words, the marketer measures and analyzes retention rate to see how many users are consistently using an app.
As the mobile app market becomes more competitive today, the importance of retention is getting bigger. Thus, it can be said that retention rate is now one of the most important metrics to track for a mobile app.
This is because it is apparent that maintaining and engaging existing users is more efficient and effective than acquiring new users for the app/web service.
Therefore, marketers are now using a variety of retention measures to extract meaningful insight from their mobile app retention data. So, from now on, let’s talk about two of the most used retention methodologies.
Classic Retention is the most prevalent measurement in the industry. You can see the daily retention figures for new users on a specific day. For example, if you measure classic retention of Day 20 based on the installation date, you will only measure users who return to the app on the 20th. Classical Retention can be analyzed by days. And thus, it is easy to calculate. It is used to measure the stickiness of new users acquired through the 1-day user acquisition campaign.
Return Retention is a method that calculates the number of people who visit the app before a specific date. It calculates the percentage of users return to the app within N days. It is used as an indicator of how many people haven’t left since the first App Open. For example, if you measure the return retention of Day 20, all users who have visited at least once before Day 20 will be considered as retained users.
So, we’ve talked about ‘Classic Retention’ and ‘Return Retention’, which are the most popular methods to calculate retention rates. Did you happen to have any questions while you were reading the text?
Many marketers have felt a thirst from the limitation of existing concept. And they began to think,
“There are countless event sections for the app we manage, but why should we only measure the retention in the single section of ‘New Install’ to ‘App Open’? Measuring retention rate of ‘Shopping Cart-to-Purchase’ seems more relevant and crucial to our app…”
Based on these questions, adbrix remaster is now here to challenge the market’s stereotype about the definition of retention.
The new “Universal Retention” provides the marketer with better experience of measuring mobile app retention.