User retention strategies will allow you to discover the best alternatives to increase the retention rate of your audience, something vital for your video reproduction service or audiovisual production project to keep growing. Who doesn’t want their audience and users to be loyal and remain loyal over time?
However, you must manage some basic concepts, such as audience retention rate and how it is calculated, in order to correctly apply user retention strategies and make them effective for your project. At JUMP Data-Driven Video, a business data management platform designed specifically for video service players, we collaborate with your project and in this article we provide the concepts you need.
What is retention rate?
The retention rate is the percentage of clients, users or audience that a service has after a certain period of time, according to the amount it had at the beginning of the cycle and the amount available at the end of it.
To calculate it, the following data are required:
- Number of customers at the beginning of a period (S).
- Number of customers at the end of a period (E).
- New customers, users or audience added during that period (N).
How is the user retention rate calculated?
To carry out any of the user retention strategies that can take your project to a new level, you first need to know the current state of your retention rate. To calculate it, once you have obtained the aforementioned data, you should apply the following formula:
Retention rate = (E – N) / S
This means: Customers at the end of the period minus new Customers, divided by Customers at the beginning of the cycle. The result must be multiplied by 100 to obtain the percentage.
Let’s look at an example to make things clearer: if at the beginning of a year you had 2,700 users on your channel, 1,500 users were added throughout the year and at the end of the cycle you were left with 3,500 users, because some of them left the channel, your audience retention rate for that year was 74%.
Why is that? Let’s apply the formula: 3500 – 1500 / 2700 = 0,74 (x 100 = 74,07 %).
This means that you retain approximately 70 out of every 100 users who join your channel. Not a bad number: although the ideal would be to retain 100% of the audience, that is practically impossible. However, there is no ideal percentage, it all depends on the type of business, the moment of its evolution and other parameters. What is important, in any case, is that the retention rate does not fall from cycle to cycle, but that it increases or, at the very least, is maintained.
Why is customer retention important?
User retention strategies are key tools for analyzing whether your content generates loyalty and acceptance. Beyond the interactions on social networks, the audience retention rate gives you a concrete numerical indicator, from which you can know what to keep and what to change in your proposal.
JUMP Retention leverages AI models to analyze user behavior, such as what content they consume the most, what their tastes are, at what times they view content, etc. and based on this data you can develop tactics and strategies to help build loyalty and retain them on your platforms.
One of the most important features of Jump Retention is that it allows you to analyze cancellations to understand why your users leave the platform and a prediction of when they are most likely to drop out. In this way, you can take the necessary actions so that users do not abandon and increase their registration time on the platform.
If you need to know more about user retention and our JUMP Retention tool, just ask us for more information.