Why does retention matter so much?
Keeping a customer is usually far cheaper than winning a new one, and retained customers tend to spend more over time. Small retention gains compound into large revenue protection.
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See how a higher retention rate keeps more customers and how much extra annual revenue that protects.
retained = customers × retention% ; revenue = retained × value
Keeping a customer is usually far cheaper than winning a new one, and retained customers tend to spend more over time. Small retention gains compound into large revenue protection.
How many more customers you keep when retention improves, and the annual revenue those extra retained customers represent.
They are two sides of one coin: retention plus churn equals 100%. An 88% retention rate is the same as a 12% churn rate.
It varies hugely by industry. Subscription software prizes rates in the 90s; retail and apps live with much lower numbers. Compare against your own past and your sector.
Because retention plays out over time. Multiplying the extra customers kept by what each is worth in a year turns a percentage into a revenue figure you can act on.