DL

David Lieb

08/30/24

@ Y Combinator

Cohort retention tracks the fraction of new users who continue using your product over time, providing a quantitative measure of user engagement.

DL

David Lieb

08/30/24

@ Y Combinator

When measuring cohort retention, track individual groups of new users over time instead of mixing all users together, which provides clearer insights into user behavior.

DL

David Lieb

08/30/24

@ Y Combinator

To effectively measure cohort retention, define how to group new users into cohorts based on when they first used your product, such as weekly or monthly.

DL

David Lieb

08/30/24

@ Y Combinator

The action that qualifies a user as active should correlate with real value from your product, like posting a photo on a social network or completing a ride on a transportation app.

DL

David Lieb

08/30/24

@ Y Combinator

The best action to define an active user is one that indicates genuine engagement with your product, filtering out superficial interactions.

DL

David Lieb

08/30/24

@ Y Combinator

Choose a time period for measuring cohort retention that aligns with how frequently you expect users to engage with your product, such as daily for social apps or weekly for utility apps.

DL

David Lieb

08/30/24

@ Y Combinator

Visualizing cohort retention trends helps you understand how user engagement changes over time relative to the initial cohort size, allowing for better analysis of user retention. Cohort retention curves are essential for understanding user engagement over time, as they track the percentage of new users who return to use the product repeatedly.

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

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.

DL

David Lieb

08/30/24

@ Y Combinator

In the early days of Google Photos, we observed that while many users dropped off quickly, a stable percentage remained engaged, which gave us confidence in the product's potential for growth.

DL

David Lieb

08/30/24

@ Y Combinator

Be cautious of measuring retention over too long a time period, as this can artificially inflate your retention metrics and mislead you about user engagement.

DL

David Lieb

08/30/24

@ Y Combinator

It's important to choose meaningful actions for measuring user engagement; simply tracking app opens can lead to misleading retention metrics.

DL

David Lieb

08/30/24

@ Y Combinator

Using payment as the sole measure of user activity can be deceptive, as users may continue to pay for a service even after they stop using it.

DL

David Lieb

08/30/24

@ Y Combinator

When evaluating cohort retention, focus on the overall shape of the retention curve rather than isolated metrics from specific time points. Be cautious when using analytics tools for measuring cohort retention, as they may not accurately reflect what you think they do.

DL

David Lieb

08/30/24

@ Y Combinator

It's important to build your own cohort retention curves using your logs or Google Sheets to develop a better understanding of your data.

DL

David Lieb

08/30/24

@ Y Combinator

Founders often don't understand what their analytics numbers represent, so it's crucial to know your data before relying on it.

DL

David Lieb

08/30/24

@ Y Combinator

You don't need to check cohort retention curves multiple times a day; refreshing them weekly or bi-weekly is sufficient to catch significant changes.

DL

David Lieb

08/30/24

@ Y Combinator

Improving your product by adding new use cases or simplifying user flows can positively impact your cohort retention curves.

DL

David Lieb

08/30/24

@ Y Combinator

Acquiring better users is essential; targeting the right customer can significantly improve your cohort retention rates.

DL

David Lieb

08/30/24

@ Y Combinator

Improving the first user experience and onboarding process is often overlooked but can greatly enhance user retention.

DL

David Lieb

08/30/24

@ Y Combinator

Creating a network effect in your product can lead to better cohort retention, as each new user enhances the experience for existing users.

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.

DL

David Lieb

08/30/24

@ Y Combinator

If your cohort retention curves are not improving, it's crucial to engage with your users to understand their needs and make necessary adjustments.

How To Keep Your Users | Startup School

Takeaways