GLOSSARY

Retention rate

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Retention rate is the percentage of customers that continue to use your product over a specific period. It indicates customer loyalty and satisfaction.

What is Retention Rate?

Retention rate shows the percentage of customers who stay engaged with your product or service over time, indicating how well you retain users.

Why It Matters

High retention rate signifies customer satisfaction and loyalty, leading to increased revenue and growth opportunities for your startup.

Examples

For instance, if you have 100 customers and 80 are still using your product after a month, your retention rate is 80%.

Related Concepts

The opposite of retention rate, it measures the percentage of customers who stop using your product within a given period.
Lifetime Value (LTV): Reflects the total revenue a customer brings during their engagement with your business, closely tied to retention rate.

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