retention rate

What is monthly retention rate?

Retention rate is the percentage of users who continue to use your product over a specific period of time. It helps you understand how well you are retaining your users.

Calculating monthly retention rate

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Here’s a simple formula to calculate the monthly retention rate:

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Collecting data

You need the following data points for each month:

• Number of users at the start of the month

• Number of users at the end of the month

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Let’s assume:

• You have 1000 users at the start of January.

• At the end of January, 800 of those users are still active.

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Plotting on a Graph

To plot this on a graph:

1. X-axis (Horizontal): Time (Months)

2. Y-axis (Vertical): Retention Rate (%)

For example, if your data looks like this:

• January: 80%

• February: 75%

• March: 70%

You plot these points on the graph:

• January at 80%

• February at 75%

• March at 70%

Creating the graph

You can use tools like Excel, Google Sheets.

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1. Enter your data in two columns: one for months and one for retention rates.

2. Select the data.

3. Go to the Insert tab.

4. Choose a Line chart.

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Additional Resources:

1. Vena Solutions Guide: This guide provides detailed steps on performing cohort analysis in Excel, which can help you understand retention patterns better.
2. Magnimetrics Cohort Analysis: Offers insights on setting up and analyzing retention rates using cohort analysis in Excel.