What Is Retention?

Written by Indicative Team


Retention Defined

A retention rate, or customer retention rate is the percentage of customers a company has retained over a certain period of time. This is an important metric because it directly reflects the profitability of a business. An easy way to calculate this metric is:

Customer retention rate = ((EC-NC)/SC)*100


EC – number of customers at the end of a period

NC – number of new customers during that period

SC – number of customers at the start of that period

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