If your retention is low — e.g., no one that signed up a month ago still uses your product — you’re better off putting money into retaining customers than generating leads because it costs 6-7x less to retain an existing user than it does to attract a new one.
Retention rate is the metric you need to improve if you want to grow your active users. It measures the percentage of users that log back in after signing up. If your retention is low — e.g., no one that signed up a month ago still uses your product — you’re better off putting money into retaining customers than generating leads because it costs 6-7x less to retain an existing user than it does to attract a new one.