User retention is the ability to keep users returning to your product. It is measured through metrics like Daily Retention, Churn Rate, and Time to Value (TTV), which provide insights into user satisfaction and product success.

What does the Daily Retention metric measure?

A churn rate of 10% means 10 out of every 100 customers stopped using the product in a specific period.

Retention metrics like TTV measure how quickly users see value in your product. For example, a short TTV shows users gain value quickly, increasing their likelihood to stay engaged.

What does Time to Value (TTV) indicate?

Increasing retention leads to a higher Lifetime Value (LTV) for SaaS businesses.

Lifetime Value (LTV) is the total revenue a customer generates during their time with a product. Customer Acquisition Cost (CAC) is the cost to acquire each new customer. High retention improves LTV and reduces CAC.

What should the relationship between LTV and CAC be for profitability?

User retention metrics help identify both product strengths and areas for improvement.

In conclusion, retention metrics are critical to understanding product-market fit and user satisfaction. High retention signals strong product performance and leads to business growth.

What does a high retention rate indicate about a product?

Churn rate and retention rate are unrelated metrics.