Retention Rate

Retention rate is used to count customers and track customer activity irrespective of the number of transactions (or dollar value of those transactions) made by each customer. In marketing and product management, retention rate refers to the percentage of customers who continue paying for a product over a given timeframe. For most industries, average eight-week retention is below 20 percent. For products in the media or finance industry, an eight-week retention rate over 25 percent is considered elite. For the SaaS and e-commerce industries, over 35 percent retention is considered elite. [1] [2] [3]


[1] Wikipedia. Retrieved May 21, 2021, from https://en.wikipedia.org/wiki/Retention_rate

[2] KAPLAN, S.N., and STRÖMBERG, P. 2004. Characteristics, Contracts, and Actions: Evidence from Venture Capitalist Analyses. . https://doi.org/10.1111/j.1540-6261.2004.00696.x

[3] Ascarza, E., Neslin, S. A., Netzer, O., Anderson, Z., Fader, P. S., Gupta, S., Hardie, B. G. S., Lemmens, A., Libai, B., Neal, D., Provost, F., & Schrift, R. (2017). In Pursuit of Enhanced Customer Retention Management: Review, Key Issues, and Future Directions. Customer Needs and Solutions, 5(1–2), 65–81. https://doi.org/10.1007/s40547-017-0080-0

Copyright 2021 - Charge Ventures