← DictionaryRetention Rate
The share of customers still active after a defined period.
How many customers stayed.
What It Is
Retention Rate is a Measurement item, filed under Retention. Stated plainly: the share of customers still active after a defined period.
It is something measured and compared over time, so one reading in isolation tells you almost nothing. That definition is deliberately narrow — the narrowness is what makes it usable.
How It's Used
In practice, Retention Rate shows up in reporting, analytics reviews and the arguments about what the numbers mean. In real work it sits close to Churn and Lifetime Value. The practical test is whether it is measured the same way each period, against something.
Why It Matters
Retention Rate is one of those items that only becomes visible when it is missing. When it is unclear, reporting becomes a matter of opinion. Deciding it deliberately costs one conversation. Leaving it undecided costs several.
It is a score. Scores are only interesting when you compare them. How many customers stayed.
Termshift™
How the meaning shifts depending on who is using it, and where.
Inside the industry, Retention Rate is used tightly and assumed to be understood: the share of customers still active after a defined period.
Away from the jargon, it is how many customers stayed.
The Bottom Line
Retention Rate pays off when it is specific and costs you when it is not. How many customers stayed.