Retention Metrics - Product Growth - MasterClass Series

Chapter 5 - Defining a Clear and Effective Retention Metric

Retention is the backbone of a product's long-term success. Acquiring users is only half the battle — the real challenge lies in keeping them engaged over time. A well-defined retention metric not only helps teams measure how well their product delivers value but also aligns everyone around a common understanding of user success. When done right, it sharpens decision-making, guiding product strategies, feature prioritization, and growth initiatives.

But crafting a meaningful retention metric isn't as simple as counting logins. It requires thoughtful consideration of three core components: frequency, core action, and user definition.

Let’s break each of these down to build a retention metric that truly reflects your product's impact.

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The Three Key Components of a Retention Metric

A strong retention metric balances three critical elements: