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metrics

Retention Rate

Percentage of customers who remain active over a specific time period.

Retention Rate measures the percentage of customers who continue using your product over a given period. High retention indicates strong product-market fit and is the foundation for sustainable growth.

Formula

Retention Rate = (Customers at End - New Customers) / Customers at Start × 100

Tips

  • Retention is the opposite of churn
  • Cohort analysis reveals true retention
  • Focus on retention before acquisition

Related Terms

CHURN RATENRRLTVPMFACTIVATION

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