Metrics
Retention Rate
The percentage of customers who keep buying, the inverse of churn.
Definition
Retention rate tracks how well you hold on to customers. High retention compounds: it lifts lifetime value, lowers effective acquisition cost, and drives word-of-mouth.
Formula
Retention Rate = (Customers retained ÷ Customers at start) × 100
Example
Keeping 475 of 500 customers over a month is a 95% retention rate (and 5% churn).