Using Lenny's Newsletter research, what is good retention for a consumer product?

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Answer
Based on Lenny's Newsletter research, here is what is considered good retention for different types of consumer products: Consumer social products (e.g. Snapchat):
  • ~25% retention at 6 months is considered good
  • ~45% retention at 6 months is considered great
Consumer transactional products (e.g. Airbnb):
  • ~30% retention at 6 months is considered good
  • ~50% retention at 6 months is considered great
Consumer subscription products (e.g. Duolingo):
  • ~40% retention at 6 months is considered good
  • ~70% retention at 6 months is considered great
For consumer SaaS products specifically (e.g. Netflix, Spotify):
  • ~55% net revenue retention is considered good
  • ~80% net revenue retention is considered great
Net revenue retention measures the percentage of recurring revenue retained from existing customers over a period of time, typically 12 months. So in summary, 6-month user retention of 25-40%+ is a good benchmark for most consumer products, while 45-70%+ is considered great retention, depending on the specific type of consumer product. For consumer subscription products, 55-80% net revenue retention is the key metric to aim for.
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