Retention rate
Measurement of customers or participants who are maintained or returned / From Wikipedia, the free encyclopedia
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Broadly, retention rate is a statistical measurement of the number of people that remain involved with some kind of entity, such as a company or research group.
Variations of this concept are used in many different fields and contexts, including marketing, investment, education, employee management, research, and clinical trials. The term is defined differently depending on the context, and is used in a variety of fields, including marketing, investment, education, in the workplace, and in clinical trials. Maintaining retention in each of these fields often results in a positive outcome for the overall organization or research study.
In marketing, retention rate is used to count customers and track customer activity irrespective of the number or monetary value of transactions made by each customer.[1]
"Retention rate is the ratio of the number of retained customers to the number at risk". In contractual situations, it makes sense to talk about the number of customers currently under contract and the percentage retained when the contract period runs out." This term should not be confused with growth (decline) in customer counts; retention refers only to existing customers in contractual situations. "In non-contractual situations (such as catalog sales), it makes less sense to talk about the current number of customers, but instead to count the number of customers of a specified recency."
In a survey of nearly 200 senior marketing managers, 63 percent responded that they found the "retention rate" metric very useful.[2]