The product allows marketers to find users that correlate to higher retention rates and orient products towards those users to encourage retention.

Some companies are starting to focus on monetization through retaining and building relationships for existing customers rather than focusing entirely on audience growth. Retention is a cheaper option than acquisition, and it is critical for businesses to build loyal customers as they expand their user base.

“Investors are becoming wary of companies with a “growth at all costs” attitude and instead want to see companies that can grow at a profit. And with user acquisition costs only getting higher, startups are starting to realize they need to place a premium on retaining their users,” states Spenser Skates, the CEO of Amplitude.

Amplitude surveyed a number of marketers holding various positions within their companies and found that 75% of them used analytics to improve engagement and retention.

In one case, mobile app QuizUp found that users who used social functions within their app were 60% more likely to become long-term users.

As tech companies start to see a decline in valuations, more focus has been placed on retaining users, as per a release.

“Whether or not this downward trend predicts the ‘burst’ of the tech bubble, one thing is clear: Businesses need to rethink their strategy in order to be successful,” states Skates.