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What is Retention Rate?

Retention rate refers to the percentage of customers or users who continue to use a product, service, or platform over a given period of time. This metric is crucial for businesses as it helps them understand how well they are retaining their customers and whether they need to make any changes to improve customer loyalty.

When it comes to web technologies, retention rate measures the number of users who return to a website or app after their initial visit. It's an important metric for companies that rely on advertising revenue as it indicates the level of engagement and interest among their user base.

In order to calculate retention rate, businesses can analyze data such as user activity logs and engagement metrics. By understanding which features or aspects of their product are most popular with customers, they can make informed decisions about future development efforts.