Retention Rate

Retention Rate is a key business metric that measures the percentage of customers who continue to use a product or service over a given period. It is a critical indicator of customer loyalty, satisfaction, and the long-term health of a business, particularly for subscription-based models or any company reliant on recurring revenue. A high retention rate signals that customers are deriving value from the offering and are choosing to remain engaged, which is typically more cost-effective than constantly acquiring new customers.