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How can I estimate my industry's average user retention rate?
I'm wondering if any of you have practical tips to estimate the user retention rate within your industry?
It's pretty deep, but actually not that hard to find - look at a company's 10K annual report.
It's not guaranteed to be in there, but sometimes public companies in your industry will highlight key metrics that are driving growth and you can find some insights in there.
It may be tough to find a public company in your exact niche, in which case you'll want to go a little broader.
For example, if I owned a coupon site, I would look at the RetailMeNot 10k Annual Report - http://investor.retailmenot.com/Cache/38120518.pdf
In this report, I don't see exact numbers you're looking for, but I do see a broad reference "2016 compared to 2015. For the year ended December 31, 2016, sales and marketing expense decreased by $1.2 million, or 1.2%, compared to
the year ended December 31, 2015. This decrease was primarily attributable to a $3.9 million decrease in paid search expenses. This decrease was offset by an increase in online, brand and other marketing expenses of $1.5 million..."
If you do enough digging you can piece together the data!
Hey Joe, thanks a lot for your answer, this seems like a genius way to figure it out! I'll do some digging and see if I can find what I need :) Thanks again!
I'm curious to understand how you'd use this information?
Hi Anuj, having a stable user retention rate, and higher than the average within your industry, is a strong indicator that you've achieved product-market fit and that you can start pushing for growth. Thus I'm trying to find out what is the average in my industry to see how I compare :)
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