Retention KPIs
key performance indicators for loyalty
Retention KPIs are key performance indicators that measure how effectively a Web3 platform or protocol keeps users active over time. These metrics provide insight into user behavior, lifecycle engagement, and the health of loyalty mechanisms. High retention KPI scores typically indicate strong product-market fit, sustainable tokenomics, and successful churn reduction strategies. Common retention KPIs include active wallet rates, repeat interaction frequency, time-in-protocol, and staking continuity rates.
Use Case: A DeFi platform monitors three primary retention KPIs: 7-day return rate, average staking duration, and percent of users active in governance. These metrics help the team optimize loyalty tiers, rebalance reward distribution, and identify high-risk churn segments.
Key Concepts:
- Daily/Weekly Active Wallets ÔÇö Number of wallets performing repeat actions over time.
- Staking Duration ÔÇö Average time users keep tokens committed to the protocol.
- Feature Engagement ÔÇö Percent of users interacting with premium or gated tools.
- Churn Rate Inverse ÔÇö The lower the churn, the higher the retention KPIs.
Summary: Retention KPIs are essential for tracking long-term value creation in Web3 ecosystems. They help teams move beyond hype metrics by focusing on what really mattersÔÇöconsistent, committed users who support the protocol through time and cycles.
| Metric | High Retention KPI | Low Retention KPI |
|---|---|---|
| 7-Day Active Wallets | Consistent or growing user base | Sharp drop after initial use |
| Avg. Staking Duration | 60+ days or more | Under 14 days |
| Governance Participation | 20ÔÇô40% of users voting | Below 5% |
| Tool Re-Usage Rate | Users return weekly/monthly | One-time or inactive accounts |