How to Measure User Retention Throughout The Product Experience

Building a successful SaaS company requires not only acquiring new customers but also retaining existing ones, as even a small improvement in customer retention can significantly enhance profits. Measuring user retention involves analyzing various metrics, each providing different insights into customer engagement and churn. Basic metrics like Customer Retention Rate and Churn Rate offer an overall view, while behavioral metrics such as Daily, Weekly, and Monthly Active Users provide a deeper understanding of user activity. Additionally, retention cost metrics, including Customer Acquisition Costs and Customer Retention Costs, help assess financial efficiency. Customer satisfaction metrics like Customer Satisfaction Score and Net Promoter Score gauge user happiness and advocacy, while revenue retention metrics, including Gross and Net Revenue Retention, evaluate financial performance. By leveraging this data, companies can refine product experiences, identify and address churn causes, and ultimately ensure long-term stability and growth.