Retention analysis

Retention Analysis

Retention analysis is the process of tracking how many users keep coming back to a product, service, or app over time. It helps businesses understand why some customers stay loyal while others stop using the product. By studying user behavior, companies can find ways to improve the experience and keep more people engaged.

Why it’s important for your business

Getting new customers is important, but keeping them is even better. Retention analysis helps businesses figure out what keeps users coming back and what makes them leave. When businesses focus on retention, they can build long-term relationships, reduce customer drop-off, and increase profits.

Examples

1. E-commerce: An online store notices that customers who get personalized product recommendations return more often, so they improve their recommendation system.
2. Finance: A banking app finds that users who set up automatic payments stay active longer, so they make the setup process easier and more visible.
3. Travel-Tech: A flight booking site sees that users who sign up for fare alerts book more trips, so they promote this feature to new visitors.

Retention analysis helps businesses understand what works, what doesn’t, and how to keep customers engaged for the long run.

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