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AS

Alex Schultz

03/24/17

@ Y Combinator

If your retention curve slopes downwards, it indicates a lack of product-market fit, regardless of initial growth metrics.

Video

YC

Growth with Alex Schultz (How to Start a Startup 2014: Lecture 6)

@ Y Combinator

Growth with Alex Schultz (How to Start a Startup 2014: Lecture 6)

03/24/17

Related Takeaways

AS

Alex Schultz

03/24/17

@ Y Combinator

A viable business has a retention curve that levels off, indicating product-market fit for a segment of the market.

DL

David Lieb

08/30/24

@ Y Combinator

If your cohort retention curves do not flatten out, it suggests that you haven't yet created a product that users want to keep using.

IV

Ilya Volodarsky

08/01/19

@ Y Combinator

Products lacking product-market fit typically see user engagement decline to zero, while those with fit will stabilize at a certain retention rate, ideally between 20-30%.

TB

Tom Blomfield

12/16/23

@ Y Combinator

It's crucial for retention curves to flatten out at some point; a 20% retention that stabilizes is better than a higher retention that declines to zero.

DL

David Lieb

08/30/24

@ Y Combinator

The key insight from cohort retention curves is that the shape of the curve matters more than the absolute number of users; a flat curve indicates potential for user accumulation over time.

DL

David Lieb

08/30/24

@ Y Combinator

The ideal cohort retention curve not only flattens but also increases over time, indicating that users are becoming more engaged with your product.

GA

Gustaf Alstromer

09/12/18

@ Y Combinator

Measuring retention is critical; if you don't have a product that retains users, you shouldn't focus on growth yet.

GA

Gustaf Alströmer

08/16/19

@ Y Combinator

Working on growth before achieving product-market fit and good retention is not a good idea.

GA

Gustaf Alströmer

08/16/19

@ Y Combinator

Retention is the most reliable way to measure product-market fit; it indicates whether users continue to find value in your product.