Full definition
Retention Rate = 100% − Churn Rate. If 95% of customers stick around after a month, retention is 95%. High retention means happy customers, which means healthy growth.
📌
Why it matters
Retention is the other side of churn and the best single predictor of whether a business lasts. Improving it moves profit more than any acquisition channel.
🧮 A worked example
Lifting monthly retention from 92% to 95% sounds trivial. Over a year it is the difference between keeping 37% of customers and keeping 54% — nearly half again as many, from identical acquisition.
⚠️ The common mistake
Celebrating strong first-month retention. The retention that matters is at three and six months, where you find out whether the customer found real value or simply had not got round to cancelling.
🔗 Related terms
More terms in Analytics & Metrics
Impressions
How many times your post appeared on someone's screen
Reach
The number of unique people who saw your post
Engagement Rate
The percentage of viewers who commented, liked, or shared
Conversion Rate
The percentage of visitors who complete a desired action
LTV (Lifetime Value)
How much an average customer is worth over the life of the relationship
CAC (Customer Acquisition Cost)
How much it costs to win a new customer
🎁 Join Now
Ready to Save 30+ Hours a Month?
Natural Poster — a 3-day free trial, no credit card required. Cancel anytime in one click. Start now and see results within 48 hours.
✓ 3-day free trial
✓ No credit card required
✓ 24/7 support
✓ Cancel fully in one click