So, one day users have installed the application on their device and launched it for the first time. So after the first launch of the application an individual turns into the user. Everybody who launched the application on a certain day for the first time, called the new users (or New Users) of that day. How many new users should be there? Of course, the more the better, but in fact it depends on your project. Most importantly, the number of new users must cover the outflow from the project, then the project will grow. The number of new users may be increased due to the advertising campaigns or by the introduction of viral mechanisms to the project, then the existing users will bring new ones.
After a while, the amount of new users increases, and at some point you want to know how many users have sampled your application. For this purpose there is a metric Total Users, it shows how many users of your application are in the database to the chosen date.
Users who have launched your application for the first time either like it or not. If the user does not like the app, he most likely leave it and not come back the next day.
If the user returns to the application the next day after the first launch, it means that judgement on "how nice'" went well. (first you judge how nice, then you judge how wise). The percentage of users who returned the next day after the first visit, is called day-1 retention. This indicator should be followed in the dynamics and constantly improved, there is no limit to perfection. If the user does not return the next day after the first visit, it means that something did not suit him, though it is most likely the interface part. Try changing the interface for new users (add or change the tutorial; enter a hint, telling new users about the benefits of the application). If you did everything right - the next day day-1 retention react and rise. Users are not acquired easy nor cheap, and it is wrong to lose them the next day, so always optimize this indicator.
The percentage of users who returned in 7 days after the first visit, is called day-7 retention.
Finally, if the users returned in 28 days after the first visit, the percentage of such users is called day-28 retention. And there it gets serious. You may assume that users are really interested in your application, if they remain faithful even after 28 days.
In an ideal situation, all three indicators of retention will be equal to 100% (the user stays with you after 1 day, 7 days, and 28 days). But this is hardly achievable. Think about what the user has to face for the first week, in the first month, because of what he may leave and optimize these bottlenecks. You may get assisted by the user segments, events and funnels. All these tools help to identify the stages where the user is making decision about leaving.
Here is a video from the webinar where you can know everything about retention:
- what does retention depend on;
- how to calculate the retention;
- how to maximize it;
- how to compare your retention with the industry values.