🔥 Tier 1 - Must KnowID: customerRetentionRate
Customer Retention Rate
% of an active customer cohort retained over a specific multi-month period
In Simple Words (Zero Jargon):
How well your brand keeps an existing group of customers active and buying over long periods without them churning.
Official Mathematical Equation
Retention Rate% = ((Customers at End of Period − New Customers Acquired) ÷ Customers at Start) × 100
Why It Is Critical
While Repeat Rate checks if an order happened again, Retention Rate measures whether a customer base stays engaged over 6-12 months. Essential for subscription and consumable wellness brands.
What You Get: An early view of long-term business health that short-term metrics like CAC and ROAS cannot show you.