How Netflix Uses Retention Metrics to Improve Product Quality

Retention metrics are a powerful tool for measuring the success of your product. Netflix, for example, uses proxy and high-level metrics to measure retention and improve their product quality. In this blog post, we will discuss how Netflix’s use of retention metrics works and the benefits it can provide.

Understanding Netflix’s Use of Retention Metrics

Netflix uses measurable, moveable, correlated metrics to help them understand customer behavior. For example, they may measure monthly active users (MAU) as a proxy for retention. This metric is useful because it is linked directly to user engagement and helps them evaluate product quality over time. Additionally, they measure total watch time as a proxy for retention since it indicates how often customers are using their service.

Another important metric that Netflix uses is daily active users (DAU). This metric helps them understand user engagement by measuring the number of people who are actively using their service on a given day. Finally, they use average session length (ASL) as another proxy for retention because it measures how long customers are spending with their service.

Improving Product Quality with Retention Metrics

Netflix’s use of these proxies gives them valuable insights into customer behavior and allows them to better understand how their product is performing in the market. Additionally, these metrics help them identify areas of improvement so that they can make changes that will improve customer satisfaction. For example, if they notice that DAU is trending downward then they can introduce new features or redesign existing ones to ensure that customers keep coming back for more. Furthermore, by tracking MAU over time they can see if their product is gaining traction or losing momentum in the market which provides valuable feedback about product quality.


Retention metrics are an incredibly powerful tool for evaluating product performance and understanding customer behavior. Netflix has mastered the art of using proxies such as MAU and ASL to track various aspects of user engagement and gain insights into how their product is doing in the market. By tracking these metrics over time they can identify areas where there is room for improvement which leads to higher levels of customer satisfaction and improved overall product performance. If you want to maximize your success as a business then you should consider taking advantage of retention metrics just like Netflix does!

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