Calculating retention rate

In this exercise, you will calculate the retention rate, or the number of remaining subscribers from the users who converted to your product. This can give you a sense of whether your marketing campaign converted subscribers who were actually interested in the product.

Conversion rate and retention rate function hand-in-hand; you could create a business with a high conversion rate by giving users a free trial, but have a low retention rate once users are charged for your services. This isn't inherently a bad thing, but it is important to provide your business stakeholders with insight into what percentage of users remain subscribers.

The formula for retention rate is:

$$ \frac{\text{Number of people who remain subscribed}}{\text{Total number of people who converted}} $$

This is a part of the course

“Analyzing Marketing Campaigns with pandas”

View Course

Exercise instructions

Calculate the number of subscribers using the user_id and converted columns in the marketing DataFrame.
Calculate the number of retained subscribers using the boolean columns user_id and is_retained.
Calculate the retention rate.

Hands-on interactive exercise

Have a go at this exercise by completing this sample code.

# Calculate the number of subscribers
total_subscribers = ____

# Calculate the number of people who remained subscribed
retained = ____

# Calculate the retention rate
retention_rate = ____
print(round(retention_rate*100, 2), "%")

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