How to Improve Your Product Retention Rate

Retention rate is a metric used to measure customer loyalty. It is the percentage of customers who continue using a product or service after they have initially signed up for it. Improving your product’s retention rate is key to achieving sustainable growth and long-term success. Here, we will look at some tips from Lenny Rachitsky on how to increase your product’s retention rate as well as examples of companies that have achieved success by improving user engagement rates over time.

How to Measure Retention

The first step in improving your product’s retention rate is understanding how to measure it. The most popular way to measure retention rate is through the cohort analysis method, which tracks the usage of new users over time. This method compares usage rates between different groups of users who joined at different times (cohorts). The more consistent usage across cohorts, the higher your retention rate.

Improving Your Product

Once you understand how to measure your product’s retention rate, you can start thinking about ways to improve it. According to Rachitsky, one of the best ways to improve your product’s retention rate is by making sure that it solves an actual problem and adds value for users. This means taking a hard look at what features are actually useful and removing any superfluous ones that don’t add value for users or help them solve their problems.

Onboarding Process

The onboarding process should be designed in such a way that it helps potential customers understand why they should use your product and how they can get maximum value out of it. This means providing clear instructions on how to get started with and navigate through the app as well as providing helpful resources and support if needed during the onboarding process. Making sure that people have a good experience with your product early on will help ensure that they stick around for longer periods of time and eventually become loyal customers over time.

Making it Stickier and Creating Value

Rachitsky also recommends creating tools that make it easier for customers to use your product on a regular basis and providing them with incentives so they keep coming back. For example, offering discounts or free gifts early in their lifecycle can help create positive word-of-mouth marketing further down the line when their friends see them using the product regularly and recommend it too! Additionally, building tools that integrate with other products or services customers already use can make them more likely to stay engaged with yours since everything they need will be in one place rather than scattered across different apps or websites!


Improved user engagement rates can lead directly to increased sales and profits for businesses big or small, which makes increasing user engagement something every business owner should strive for – no matter what size their business might be! By following Lenny Rachitsky’s advice above on how to increase customer loyalty through improved onboarding processes, better products, stronger incentives, integrated tools etc., businesses large or small can begin seeing improvements in user engagement rates over time – leading directly towards increased profits! Therefore, investing in improving user engagement rates now will pay dividends in terms of increased revenue later! So don’t wait – start working towards improving user engagement today!

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