Which metric indicates the percentage of users who continue using a service over time?

The retention rate is a crucial metric that reflects the percentage of users who continue using a service or product over a specified period. This measurement provides insight into customer loyalty and satisfaction, indicating how effectively a company can keep its users engaged. A high retention rate suggests that customers find value in the service and are likely to continue using it, which can lead to increased lifetime value and overall business sustainability.

In analyzing other metrics, churn rate, for example, focuses on the percentage of customers who stop using the service during a defined period. While this is valuable information, it essentially provides a complementary view rather than directly indicating ongoing usage. Conversion rate measures the percentage of potential customers who take a desired action, such as making a purchase, but does not assess customer longevity. ARPU (Average Revenue Per User) gauges revenue generation per user and does not address the aspect of continued customer engagement.

Understanding retention rate helps startups and established businesses refine their customer engagement strategies, ensuring they meet user needs and enhance satisfaction. This focus on sustained user engagement is vital for long-term success.