Waste less $$$ on user acquisition
You can pour as much time and money into marketing as you like, but no retention means zero long-term users. Without retention, all you have is a leaky bucket. Wasting less means you can spend more at the top of the funnel which becomes a competitive advantage.
Improve your number of viral touchpoints
The longer you retain users, the more opportunities you have for that user to share your product with other people and bring in new users into their product. As you increase virality, you decrease your cost of acquisition which once again gives you a competitive advantage.
Decreases your payback period
Improving retention means improving conversion to paid in freemium products. The longer you retain a user the more opportunities you get to upsell that person. The more money you make per user the faster you can recover the cost of acquiring them.
If you care about growth then you should care about retention.
Making retention one of your primary growth metrics can change the trajectory of your company from one that loses users over time, to one that sustains true growth.
This short free training video will show you how to improve low retention rates and keep more users for longer by analysing your product data, listening to your users and designing excellent experiments.