What is cost per N-day retained user? #
Cost per N-day retained user is a metric that measures the cost of acquiring and retaining a user for a specific number of days, such as 7-day, 14-day, or 30-day. This metric is commonly used in mobile app marketing to evaluate the effectiveness of user acquisition and retention campaigns.
Why is cost per N-day retained user important? #
This metric helps marketers to understand the efficiency of their marketing efforts in terms of user retention. A lower cost per N-day retained user indicates that the company is able to acquire and retain users at a lower cost, which is desirable for maximizing profits.
How is the cost per N-day retained user calculated? #
The cost per N-day retained user is calculated by dividing the total cost of the user acquisition and retention campaign by the number of users who remained active on the app after N days.
For example:
If a campaign costs $10,000 and 1,000 users remain active on the app after 30 days, the cost per 30-day retained user would be $10 (i.e. $10, 000 / 1000 = $10)
How to optimize the cost of N-day retained User? #
To optimize the cost per N-day retained user, a company should focus on improving the user onboarding process, targeting the right audience, optimizing the pricing, and providing excellent customer support. By creating a high-quality, engaging, and personalized user experience, and continuously monitoring and analyzing key metrics and user behavior, the company can increase user retention and reduce churn, leading to a lower cost per N-Day Retained User.
