Retention is the most important metric for a new feature or a new app. Focusing on acquisition or monetisation can seem like a more exciting problems to solve but solving for retention is most critical.
Read this thread and you will be convinced at the end of it.
Read this thread and you will be convinced at the end of it.
1. Retention can in fact drive acquisition
For many products, retention has a double effect. More users you retain, more key actions are performed like sharing, inviting, word-of-mouth, or creating content and it sets off a self-reinforcing cycle that drives acquisition.
For many products, retention has a double effect. More users you retain, more key actions are performed like sharing, inviting, word-of-mouth, or creating content and it sets off a self-reinforcing cycle that drives acquisition.
2. Retention accelerates breaking even on customer acquisition cost. Faster you solve for this, sooner you can start reinvesting in acquisition and fuel your growth.
3. Retention impacts virality
Let me give an example for this. In Loom's case the more users they retain, the more videos they create and share with others. This behaviour introduces new people to the product who go on to sign up and create and share their own videos.
Let me give an example for this. In Loom's case the more users they retain, the more videos they create and share with others. This behaviour introduces new people to the product who go on to sign up and create and share their own videos.
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