Retention rate: Indicator for customer loyalty

February 14, 2024

Retention rate is an important metric that measures the percentage of customers who remain loyal to a product or service over a certain period of time, providing insights into the effectiveness of a startup's customer retention strategies. This metric is crucial for understanding the long-term relationship between companies and customers and plays an essential role in evaluating the sustainability and success of business models. By optimising the retention rate, startups can increase the loyalty of their customer base, increase the lifetime value of customers and ultimately create a solid foundation for continued growth and profitability.