How does engagement differ from retention?

Engagement — this is the level of activity and interaction of the user with the product: how much time they spend, how often they use features, how actively they participate.

Retention — this is the product's ability to keep users over time, meaning how many users return and continue to use the product after the first use.

Example: if a user frequently opens the app and uses it actively — this is high engagement. If they return to the app after a week, a month — this is a retention indicator. Ideally, the product should ensure both high engagement and high retention.