Retention curve
A retention curve plots the share of a cohort still active against time since acquisition. Its shape matters more than any single point: a curve that flattens indicates a durable core, while one that keeps declining means the product never reached habit.
Why it matters for ARPU
Flattening the curve raises lifetime value more than any single campaign, and it is where onboarding decisions pay back for years.
Related terms
Cohort analysisCohort analysis groups customers by a shared starting characteristic, usually acquisition month, and follows each group over time.Churn rateChurn rate is the share of customers, or of revenue, lost in a period.Survival analysisSurvival analysis models time until an event, handling customers who have not churned yet as censored rather than discarding them.Lifetime valueLifetime value is the discounted margin a business expects from a customer over the whole relationship.