What retention rate is good for a startup?

Question

Hello product hunters,

Recently I was thinking about the importance of active users when building a strong startup.

My current returning users rate is around 25-30% for my product Affistash.com.

What about you? I'm curious on what you guys have going on : )

Steven Birchall · Accepted Answer

For an established freemium SaaS product the 'gold standard' is usually 40% so having 25-30% in the early stages is extremely positive.

Murali Gottumukkala · Answer

@vicdevelopmently If its freemium, I would retention rate of 5 to 10%

Aleksandr V · Answer

Hi Victor,

I would say it really depends on the industry a startup is in.

Food delivery services would have a different retention rate compared to a startup that sells beds for kids on subscription.

Victor Giurgiu · Answer

@joanduarte I think I should be good for now, I am hoping for it to increase with time, since we are still relatively news. Maybe the users didn't have enough time to become familiar with the features.

Joan Mateo Duarte 🚀 · Answer

Depending on how many weeks are you counting. For 8-week retention over 25/30% is good. Higher than 35/40% you have a gem.

Victor Giurgiu · Answer

@murali_aasaan If we are talking about paid customers, then I definitely agree, but if the startup is running a freemium type product, then I think that it 50 to 70% is a bit high, but definitely achievable

Murali Gottumukkala · Answer

Depending on type of platform, anywhere between 50 to 70%

Krystian Álvarez · Answer

It depends on many factors but I'd say between 20% to 30%.

Victor Giurgiu · Answer

@stevenbirchall That's amazing! I guess I'm lucky in that case : )

What retention rate is good for a startup?

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