A founder and investor playbook on why retention matters, what great retention looks like by category, and how to build products that keep users coming back.
It's actually very important for a founder to keep track of retention. What's also important is to analyze the reasons behind the patterns and rate of retention. For example, it is possible to easily make hypothese and test them to understand what brings value and what don't (I briefly talk about it in an article "Why Entrepreneurs Should Think Like Scientists"). I think that showing this type of analyzes to investors can help building a stronger relationship, and maybe gather suggestions for next moves.
Strong piece. One nuance worth adding: retention fails long before churn dashboards light up. It fails when time-to-value is unclear and the system relies on reactivation instead of prevention. Network effects aren’t a safety net, they’re a multiplier — in both directions.
This is where the Hooked Model, from my book Hooked (geni.us/hooked), can prove super helpful. Use the psychology of engagement to keep users coming back!
Thanks for the comprehensive guide!
It's actually very important for a founder to keep track of retention. What's also important is to analyze the reasons behind the patterns and rate of retention. For example, it is possible to easily make hypothese and test them to understand what brings value and what don't (I briefly talk about it in an article "Why Entrepreneurs Should Think Like Scientists"). I think that showing this type of analyzes to investors can help building a stronger relationship, and maybe gather suggestions for next moves.
Strong piece. One nuance worth adding: retention fails long before churn dashboards light up. It fails when time-to-value is unclear and the system relies on reactivation instead of prevention. Network effects aren’t a safety net, they’re a multiplier — in both directions.
Great article. I love the Stan metaphor!
This is where the Hooked Model, from my book Hooked (geni.us/hooked), can prove super helpful. Use the psychology of engagement to keep users coming back!
"rare cases where retention curves bend upward". This is the consumer saying, "no, you were definitely right." Much love goes to the product architect