02 May 2024

Retention Rate is the New Engagement Rate: Why Keeping Users Comes First

0 min read
Retention Rate is the New Engagement Rate: Why Keeping Users Comes First
Aurélie BrunetWritten ByAurélie Brunet

As the Director of Performance, Aurélie specialises in creating new business for Propeller through outreach and finding areas in which the company can expand.

In the world of web analytics, engagement metrics have long been king. Tracking likes, shares, comments – all signs a user is actively interacting with your brand. But here’s the truth for today’s digital experts: Retention rate is the new engagement rate.

Don’t get us wrong, engagement is still important. It’s the initial spark that draws users in. But a user who taps “like” once and disappears isn’t driving long-term value. Retention is about building loyalty, keeping users coming back, and ultimately, turning them into advocates for your brand.

Here’s why retention should be your new north star metric:

  • Engagement Doesn’t Guarantee Loyalty: A user who spends hours scrolling through your social media feed isn’t necessarily a loyal customer. They might just be easily distracted. Retention shows users who find true value in your product or service and keep coming back for more.
  • Focus on Lifetime Value: Engaged users might not convert into paying customers. Retention looks beyond the initial interaction and focuses on users who become part of your long-term ecosystem, driving recurring revenue and boosting your lifetime value.
  • Reduced Customer Acquisition Costs: Acquiring new users is expensive. Retaining existing ones is far more cost-effective. By focusing on keeping users happy and engaged, you save resources and build a sustainable business model.

So, How Do We Make Retention Rate the Priority?

  • Shifting your focus to retention requires a data-driven approach. Here are some key strategies:
    • Track the Right Metrics: Go beyond basic engagement metrics. Look at in-app purchases, repeat visits, sign-ups for premium services – all indicators of user commitment.
    • Personalise the User Journey: Tailor your communication and offerings to each user’s needs and behaviour. This builds a deeper connection and increases the value they perceive in your brand.
    • Prioritise User Feedback: Actively solicit and respond to user feedback. Address pain points, improve the user experience, and show users you care about their long-term satisfaction.
    • Nurture Relationships: Don’t let interactions drop off. Use targeted email campaigns, loyalty programs, and exclusive offers to keep users engaged and coming back for more.

    By prioritising retention, you’re building a sustainable business model that thrives on loyal customers. Remember, a single, highly engaged user who disappears might look good on a vanity metric, but a user who consistently finds value in your product or service – that’s the user worth keeping. Make retention your new engagement rate, and watch your business flourish.

    Get in touch with Propeller today to find out how we can help you retain and grow your customer base.

Caught your attention?

Let's see how we can partner to drive results for your business.

Read more