How Improving User Retention Drives Revenue - Issue 28

Back of the napkin math for PMs: how increasing user activity affects revenue

This case is a common challenge for analysts and PMs to figure out how improving user retention and optimizing product flow or features leads to increased revenue. When there is no direct correlation, how is one supposed to measure or quantify the impact? 

Case study: From all signed up users, 62% perform their first activity (post a picture, upload a st…