To improve retention you can focus on — activation, engagement and resurrection.
Focus on Dormant users.
Returning users who used to have a habit back to an engaged state.
We call these dormant users, they once had the habit established, but no longer.
Consider the difference between non-activated and dormant users.
Most users among your inactive users will be non-activated users, they have an ACTIVATION problem.
Within dormant users, you will see that the probability of resurrecting a user decreases exponentially. For users that have been dormant a long time, you should consider those churned. These users are often not worth trying to resurrect, the probability of resurrecting them is so low that it’s not worth the effort/cost to try.
When considering who to resurrect, think about your dormant users only, subtracting non-activated or churned users.
Users (dormant only) x response rate x % retained = lift
Usually you have a low response rate, so the lift will be small.