Retention Curve

A retention curve is a graph that shows the percentage of customers or users of a startup's product or service who continue to use the product over time.

The curve is plotted on a graph, with time on the x-axis and the percentage of customers who remain active on the y-axis.

A retention curve is a useful tool for startups to understand customer behavior and track the effectiveness of their retention efforts over time.

The shape of the retention curve can provide insight into how well the startup is retaining its customers and can help identify any issues that may be causing customer churn.

For example, if the retention curve shows a steep drop-off in the number of active users (see: MAU, DAU, HAU) over the first few weeks after sign-up, this may indicate a problem with the onboarding process or the product's usability.

On the other hand, if the curve shows a relatively flat line over time, this may indicate that the startup has successfully retained a high percentage of its customers.

By monitoring the retention curve, startups can track their progress in retaining customers and adjust their strategies to ensure long-term growth and success.