What is Considered a Good Customer Retention Rate?

The retention rate depends on many factors: the source of traffic, type of product, category, location, target audience, and other aspects. For example, statistics from AppsFlyer for the third quarter of 2023 show how significantly this metric can vary depending on the category. The data was collected worldwide and covered a 30-day period after app installation.

News apps in the third quarter of 2023 demonstrated a retention rate of over 9% 30 days after installation. At the same time, educational apps showed less than 2% retention over the same period. Entertainment and gambling apps retained about 3% of users a month after download.

It’s difficult to define a "good" retention rate without considering the context of your product and audience. Retention benchmarks can vary significantly across industries. The key is to focus not only on market averages but also on your own growth goals, aiming to gradually increase user engagement and reduce churn.

A bit more statistics:

• The average retention rate on Android devices was 21.1% on the first day after installation, but it dropped to 2.1% by day 30. On iOS, the retention was slightly higher—23.9% on the first day—yet also decreased to 3.7% by the 30th day.
• Among different app categories, news apps showed the best retention rates, while photo and video apps were less successful in this regard.
• Geographically, Japan showed the highest user retention over 30 days, while China had the lowest rate, at just 1.5%.