Retention Rate

Retention rate is the share of customers or users who remain active, subscribed or buying at the end of a period compared with those at the start. It is the inverse of churn rate: if 6% churn in a month, 94% are retained.

Why it matters

Keeping a customer is typically cheaper than acquiring a new one, and small differences in retention compound over time because they lengthen customer lifetime and raise lifetime value. Retention is tracked for subscriptions (customers still paying), apps (users returning on day 1, day 7, day 30) and e-commerce (repeat buyers). Plotting it by cohort shows whether the product keeps users after the early drop-off.

Example

Customers at start of month:  500
New customers during month:    80   (not counted)
Customers lost:                25
Retention = (500 - 25) / 500 = 95%

Common mistakes

• Including newly acquired customers in the calculation.
• Comparing logo retention (number of customers) with revenue retention without saying which is used.
• Mixing monthly figures with annual ones; 95% monthly is far lower than 95% annually.
• Defining "active" differently across reports.

Related

• Churn rate
• Cohort analysis
• Net revenue retention
• LTV

यह पेज सामान्य जानकारी है, जिसे हमारी संपादकीय टीम ने लिखा है और दस्तावेज़ीकरण बदलने पर अपडेट किया जाता है। सर्वर और प्रदाता अलग-अलग होते हैं, इसलिए बदलाव पहले सुरक्षित तरीके से जाँचें। देखें: संपादकीय नीति और अस्वीकरण.