What matters for growth is customer retention

Alex Schultz, VP of growth at social media giant Facebook, talks about calculating your customer retention and comparing that to your competition.


1. Look at your user activity percent 30 days after joining your website – is this percentage leveling out?

2. If the percentage keeps dropping as time goes on, you need to improve your product to increase user retention. If retention is increasing as time goes on, you know your product is good enough/improving and can focus on growth strategies.

3. Analyse the retention of your competition for comparison – take the amount of monthly active users they have and divide this by the size of the market they are targeting. Is your retention comparable to theirs?


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