Hey Pierre, thanks for sharing. Regarding the « On product usage (User Retention) metric» part, what if users are not the ones directly influencing the purchase decision? Does it still make sense to focus on user retention like this?
I feel like a lot of examples you showed are relevant for in-app purchases (duolingo, strava..)
In that case, you can both look at user retention (is the end user using the product?) and revenue retention (do payers continue paying?). For revenue retention, you calculate it on the payment period basis (yearly or monthly generally).
But in many cases, if you have a bad user retention and nobody is using the product, it will likely results in a churn and then degrade revenue retention. Hope that's clear.
Hey Pierre, thanks for sharing. Regarding the « On product usage (User Retention) metric» part, what if users are not the ones directly influencing the purchase decision? Does it still make sense to focus on user retention like this?
I feel like a lot of examples you showed are relevant for in-app purchases (duolingo, strava..)
Hey Martin!
In that case, you can both look at user retention (is the end user using the product?) and revenue retention (do payers continue paying?). For revenue retention, you calculate it on the payment period basis (yearly or monthly generally).
But in many cases, if you have a bad user retention and nobody is using the product, it will likely results in a churn and then degrade revenue retention. Hope that's clear.
Very clear thanks for explaining, obviously user retention is still relevant for every businesses i don’t mean the opposite :)