The retention rate describes the proportion of customers or users who continue to use a product or service over a specific period of time.<\/p>\n
It is a key indicator of customer retention and shows how successful a company is at retaining existing customers in the long term.<\/p>\n
The basic calculation is as follows:<\/p>\n
Retention rate = ((Customers at the end of the period \u2013 new customers) \u00f7 Customers at the start of the period) \u00d7 100<\/strong><\/p>\n One example:<\/p>\n A start-up begins the month with 1,000 customers. Over the course of the month, it gains 200 new customers. By the end of the month, there are a total of 1,050 active customers.<\/p>\n (1,050 \u2013 200) \u00f7 1,000 \u00d7 100 = 85 per cent retention rate<\/strong><\/p>\n This means that 85 per cent of the original customers have remained.<\/p>\n A high retention rate may indicate that:<\/p>\n A low retention rate can be caused by a number of factors:<\/p>\n The retention rate is particularly relevant for subscription models, Software-as-a-Service offerings, platforms and digital products. It is closely linked to the\u00a0Churn rate<\/strong>, which describes the proportion of customers who no longer use the product or who cancel their subscription.<\/p>\n <\/p>\n Start-ups can improve their retention rate by:<\/p>\n The retention rate should always be analysed over a clearly defined period and for comparable customer groups. Depending on the business model, a good retention rate can vary considerably.<\/p>\n innoWerft helps start-up founders to interpret relevant key performance indicators relating to customer retention, analyse the causes of customer churn, and align their business models and products with long-term usage and sustainable growth.<\/p>","protected":false},"excerpt":{"rendered":" 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 insight into the effectiveness of a startup's customer retention strategies.<\/p>","protected":false},"author":5,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","content-type":"","inline_featured_image":false,"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[47],"tags":[],"class_list":["post-10562","post","type-post","status-publish","format-standard","hentry","category-glossareintrag"],"yoast_head":"\n\n
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\n Retention rate<\/strong><\/td>\n Churn rate<\/strong><\/td>\n<\/tr>\n<\/thead>\n\n \n Proportion of customers retained<\/td>\n Proportion of customers lost<\/td>\n<\/tr>\n \n As high as possible<\/td>\n As low as possible<\/td>\n<\/tr>\n \n Demonstrates customer loyalty<\/td>\n Shows customer churn<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n \n