Retention (Customer Retention)
The percentage of customers who continue to use your product or service over a given time period.
Definition
Customer retention rate measures the percentage of customers a company retains over a specific period. It's the opposite of churn rate and indicates customer satisfaction and product-market fit.
How to Calculate
Retention Rate = ((End Customers - New Customers) / Start Customers) × 100
Why It Matters
- Cost Efficiency: Keeping customers is cheaper than acquiring new ones
- LTV Impact: Higher retention directly increases customer lifetime value