Retention Rate

• Fundamental
• Metric
• Customer Relationship

The percentage of customers who continue to buy from a business over a specific period.

Problem it addresses

Maintaining customer loyalty in a competitive market is challenging. Businesses need to know how well they retain customers over time to evaluate the effectiveness of their customer relationship and loyalty programs. Without understanding retention, companies may fail to capitalize on opportunities to encourage repeat business and increase revenue.

How it helps

Measuring the retention rate helps businesses identify how successful they are at keeping customers over time. Insights gained from analyzing retention rates can inform strategies to improve customer satisfaction, loyalty programs, and product offerings, ultimately leading to increased customer loyalty and revenue.