Retention Rate is the percentage of customers or users that a business retains over a specific period of time, showcasing their ability to maintain ongoing relationships with their audience.
It is calculated by measuring:
- Customer count at the period's start and end
- New customer acquisitions during that time
- Levels of engagement or interaction
Businesses use retention rate to evaluate customer satisfaction and long-term loyalty, tailoring efforts to reduce churn and enhance user experience.
In practice, a strong retention rate often points to high customer satisfaction, effective products or services, and successful engagement strategies. This metric directly influences growth by increasing customer lifetime value, reducing acquisition costs, and building a loyal brand community.
Retention rate is pivotal as it highlights how well organizations are sustaining relationships with their audience, driving profitability and sustainable growth over time.
Data Driven Decisions for Effective Future Planning
Case Study
Automotive: Cross-incentive consolidation empowers program success
A large vehicle manufacturer were looking to consolidate their dealer Co-Op/MDF, Rebates and SPIFFs incentives and work together to influence dealer channel behavior.
By accumulating incentives into one branded platform, enabled the manufacturer to have clearer visibility of claim submissions, engagement and activity reporting, through the analytics.
Learn how 360insights helps this manufacturer understand how measuring the data provides a better attribution of direct program ROI.