Calculating a single retention rate (D7 retention rate for example) could be useful when you compare funnels. Imagine you test several onboarding flows. To compare them you need to calculate multiple metrics for each user cohort (in this case a cohort is all users who had a certain onboarding flow):
- signup rate
- activation rate
- unit economics (like ARPU)
- D7 retention rate
We’ll implement a similar analysis in the chapter about AB-tests. For now, it’s just an example when a single retention rate could be useful.
Let’s calculate it using our new...