WHERE MY MONEY WENT
WHERE MY MONEY WENT
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Metrics

Retention Rate

The percentage of customers who continue paying for a product over a given timeframe.

What is Retention?

Retention Rate measures your ability to keep customers happy and paying. It is the inverse of Churn Rate.

Formula

((Customers at end of period - New customers acquired) / Customers at start of period) * 100

Why it Matters

Increasing customer retention rates by just 5% can increase profits by 25% to 95%. It is far cheaper to retain an existing customer than to acquire a new one.