Engagement & Retention Funnel
Analyze user funnel from visitor to long-term retention with LTV calculation. Enter values for instant results with step-by-step formulas.
Formula
Retention Rate = (Active Users at Period N / Activated Users) × 100
Retention measures what percentage of users who activated continue to be active at a given period. Track D1, D7, D30, D90 to understand the full retention curve.
Worked Examples
Example 1: SaaS Product Funnel
Problem:Monthly: 50K visitors, 2,500 signups, 1,500 activated, 1,000 W1, 500 W4, 250 W12. ARPU $100.
Solution:Conversion Rates: Visitor→Signup: 5% (Good) Signup→Activation: 60% (Good) Activation→W1: 67% (Good) W1→W4: 50% (Average) W4→W12: 50% (Average) Retention: D7: 67%, D30: 33%, D90: 17% Biggest leak: W1→W4 (500 users lost) LTV: $100 × 17% × 12 = $204 Focus: Improve D30 retention through: - Week 2-3 engagement emails - Feature discovery prompts - Usage-based notifications
Result:17% D90 retention | LTV: $204 | Fix Week 1→4 drop (500 lost)
Example 2: Mobile App (Gaming)
Problem:100K installs, 80K opens (signups), 30K tutorial complete, 15K D7, 5K D30, 2K D90. IAP ARPU $5.
Solution:Conversion Rates: Install→Open: 80% (Normal) Open→Tutorial: 37.5% (LOW - major issue) Tutorial→D7: 50% (Average) D7→D30: 33% (Below avg for games) Retention: D7: 50%, D30: 17%, D90: 7% Biggest leak: Open→Tutorial (50K lost!) LTV: $5 × 7% × 12 = $4.20 Critical fix: Tutorial completion - 50K users bouncing = acquisition waste - Simplify tutorial, add skip option - Test first 60 seconds of experience
Result:7% D90 | Tutorial is killing retention | 50K users lost before activation
Example 3: E-commerce Subscription
Problem:200K visitors, 4K signups, 3K first order, 2.5K M1 active, 1.5K M3 active, 1K M12 active. $30 ARPU.
Solution:Conversion Rates: Visitor→Signup: 2% (Low for ecom) Signup→First Order: 75% (Excellent) Order→M1: 83% (Excellent) M1→M3: 60% (Good) M3→M12: 67% (Good) Retention: M1: 83%, M3: 50%, M12: 33% Biggest opportunity: Visitor→Signup LTV: $30 × 12 × 33% = $119 Focus: Top of funnel - 2% signup rate leaves money on table - Add exit intent popup (+0.5%) - Improve value proposition - Test pricing display Retention is actually strong!
Result:33% M12 retention (strong) | LTV: $119 | Fix signup rate (2% is low)
Frequently Asked Questions
What are good retention benchmarks?
D1: 30-50%, D7: 20-40%, D30: 10-25%, D90: 5-15%. Top apps: D1 40%+, D30 25%+. Varies by category - social apps need higher, productivity can be lower but more consistent.
What is the retention curve?
Graph showing % of users active over time. Steep drop = engagement problem. Flattening curve = found core users. Goal: flatten early and maintain steady state. Different cohorts can show improvement.
How do I prioritize funnel improvements?
Fix biggest absolute drop first (most users lost). Then consider ease of fix. Early funnel fixes (signup, activation) compound through later stages. Use A/B testing to validate changes.
What are key sales funnel metrics?
Track conversion rates at each stage: visitors to leads (2-5%), leads to qualified leads (20-30%), qualified to opportunities (50-70%), and opportunities to closed deals (20-30%). Overall conversion = product of all stage rates. Measure average deal size, sales cycle length, and pipeline velocity (pipeline value * win rate / cycle length).