What is good user retention? Advice from the experts:

• Consumer Social: 25%https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌" title="Ok hand" aria-label="Emoji: Ok hand"> 45%https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
• Consumer Transactional: 30%https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌" title="Ok hand" aria-label="Emoji: Ok hand"> 50%https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
• Consumer Subscription: 40%https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌" title="Ok hand" aria-label="Emoji: Ok hand"> 70%https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
• SMB / Mid-Market SaaS: 60%https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌" title="Ok hand" aria-label="Emoji: Ok hand"> 80%https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">
• Enterprise SaaS: 70%https://abs.twimg.com/emoji/v2/... draggable="false" alt="👌" title="Ok hand" aria-label="Emoji: Ok hand"> 90%https://abs.twimg.com/emoji/v2/... draggable="false" alt="🔥" title="Feuer" aria-label="Emoji: Feuer">

(Read on)

2/ What are these benchmarks based on?

These are averages across benchmarks from 20+ of the world& #39;s top growth experts and investors, based on their experience building and investing in some of the world& #39;s most successful businesses.

3/ Is it OK if my retention is lower?

Yes, in three cases:
1. You’re just starting out
2. You have low CAC and marginal costs
3. You’re not building a venture-scale business

"Ultimately, what matters is that your retention supports sustained growth" – @far33d

4/ What *is* retention?

User retention is the % of users who signed up and are still active (i.e. using the product) – 6 months later in this case.

Net revenue retention is company’s MRR one year ago divided into the current month’s MRR, from that same group of customers.

5/ Why is retention important?

"Great retention is the best indicator of PMF, it is the most important factor in a user’s LTV, and high retention drives all of the best acquisition strategies. It& #39;s growth& #39;s equivalent of the triple-word-score." – @onecaseman

6/ How do I measure my retention?

A few useful resources:
https://www.sequoiacap.com/article/retention
https://www.sequoiacap.com/article/r... href="">https://www.youtube.com/watch... https://www.reforge.com/blog/growth-metric-acquisition-monetization-virality">https://www.reforge.com/blog/grow...

The One Growth Metric that Moves Acquisition, Monetization, and Virality — Reforge

In 2014, my team and I had been digging into retention for our new HubSpot Sales product. The more we unearthed, the more I realized how critical improving retention was to blowing out the product’s...

https://www.sequoiacap.com/article/retention

7/ And finally, for much much more, including individual benchmarks from each expert, public comps, and additional insights, check out the full post along with @onecaseman& #39;s companion post
https://www.lennyrachitsky.com/p/what-is-good-retention-issue-29">https://www.lennyrachitsky.com/p/what-is... https://caseyaccidental.com/what-is-good-retention">https://caseyaccidental.com/what-is-g...

8/ Here’s the full post https://www.lennyrachitsky.com/p/what-is-good-retention-issue-29">https://www.lennyrachitsky.com/p/what-is...