Customer retention is the inverse of customer churn. It is the ability to retain a number of customers who continue their subscription after their term. The higher the retention rate the better for the business
How to calculate Retention?
Compare the total number of customers at the beginning and end of a specific period excluding any new customers acquired during the same period.
Why is Retention Important?
Retention is cost-effective than acquiring new customers. Retention impacts ROI, overall business growth, and customer loyalty.