Retention rate

Retention rate is the share of customers who remain active over a period, essentially the counterpart to churn. High retention points to satisfied customers and more predictable, cheaper growth than constantly chasing new customers.

A cohort analysis can show the retention rate for each month after the first purchase and reveal when customers typically drop off.

Illustration symbolizing the concept "Retention rate": Retention rate is the share of customers who remain active over a period, essentially the counterpart…

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