Retention Rate
topic on 6 shows · 8 statements across 6 episodes
the Y Combinator Startup Podcast 
BG2 Pod 
We Live to Build 
Lenny's Podcast 
the Official SaaStr Podcast 
Top Founders
8 statements about Retention Rate, every show
Levie: Software firms with 90% retention cannot reach high-margin cash flow
“One has a 90% retention rate or something.
which means that sales and marketing is required forever to refuel the customer base because of the churn rate of that product.
And it means you'll never actually converge on, you'll never actually converge on, on ca…”
Blomfield: Retention flattening at 20% beats higher retention decaying to zero
“And it almost matters that they flatten out at any point as opposed to a high point. You know, I take a 20% retention that flattens out over a higher retention initially that goes to zero.”
Widjaja: Scaled products should target 60% week-over-week retention for free tiers
“If users are coming back, if it's a free product, 60%, right? It has to be at least 60% if it's a free product week over week. If it's a paid product, I usually look at that more as like maybe 20 to 30%.”
Widjaja: Startups testing with friends and family need nearly 80% retention
“So if you are much smaller, like your friends and family, that better be near close to 80%, no matter what, because if you can't even convince the people who care about you to use the product, it probably isn't gonna solve the job for anyone else.”
Widjaja: Gojek saw 60% to 70% cohort retention in its early days
“I think I usually give teams like two to three weeks or frequency periods to see things flatten, but it better flatten around 60% for a free product. That's kind of, that's actually what we saw at Gojek early days. It was like, 60, 70% retention rates because …”
HubSpot's retention jumped from 50% to 97% with five feature adoptions
“HubSpot. We caught this late at like ten million in revenue. Our churn was not good, and we ran 50 permutations and found out that if our customers use five or more features in the platform in the first two months, the retention rate is like 97%, and if they d…”
Hartsoe: Broad customer acquisition damages company valuation by lowering retention
“If you are casting a wide net, whether it's through referrals or through other marketing channels, then you may not be picking up the best fish, and that will hurt your valuation in the long run because it looks like you can't hold a customer.”