Q:What is a good retention rate for a consumer product?

For a consumer product, the benchmarks depend on the sub-type. Lenny Rachitsky's research puts six-month user retention at roughly 25% good and 45% great for consumer social, about 30% good and 50% great for consumer transactional, and about 40% good and 70% great for consumer subscription products¹⁶. Retention is best judged by where the cohort curve flattens, not by one number¹³.

01Benchmarks by consumer model

• Consumer social: ~25% is good, ~45% is great at six months¹⁶.
• Consumer transactional: ~30% is good, ~50% is great¹⁶.
• Consumer SaaS or subscription: ~40% is good, ~70% is great¹⁴⁶.
• Consumer net revenue retention for SaaS: ~55% is good, ~80% is great¹.

02Reading the curve and context

Lenny Rachitsky says a curve that flattens above zero shows some market wants the product, but durable businesses need a much higher plateau⁶. Low retention can be acceptable when acquisition is cheap or the business is not venture-scale⁴.