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A Summary of

What is good retention

by
Lenny Rachitsky
Lenny's Newsletter
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GOOD and GREAT User Retention Based on Company Type

  • Consumer, Social
    • Free to use and generally supported by advertising
    • ~25% is GOOD, ~45% is GREAT
  • Consumer, Transactional
    • Supported by one-off purchases
    • ~30% is GOOD, ~50% is GREAT
  • Consumer, SaaS
    • Sell a monthly/yearly subscription to consumers
    • ~40% is GOOD, ~70% is GREAT
  • SMB / Mid-Market, SaaS
    • Sell a subscription product to companies, 100-1000 employees
    • ~60% is GOOD, ~80% is GREAT
  • Enterprise, SaaS
    • sell a subscription product to large enterprise companies
    • ~70% is GOOD, ~90% is GREAT

GOOD and GREAT Net Revenue Retention Based on Company Type

  • Consumer, SaaS
    • ~55% is GOOD, ~80% is GREAT
  • Bottom-Up, SaaS
    • Offer a self-serve prosumer subscription product to individual contributors inside of a company
    • 100% is GOOD, ~120% is GREAT
  • Land and Expand VSB SaaS
    • ~80% is GOOD, ~100% is GREAT
  • Land and Expand SMB / Mid-Market SaaS
    • ~90% is GOOD, ~110% is GREAT
  • Enterprise SaaS
    • 110% is GOOD, ~130% is GREAT
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