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The share of customers who keep using a product or buying from a business over time.
Example
Starting with 1,000 customers, ending with 1,050 and gaining 150 new ones gives 90% retention.
For your role
Choose your role to see what this term means in your work.
Why it matters
Keeping customers is usually cheaper than finding new ones.
Where it is used
Customer dashboards, marketing plans and cohort reports.
How to calculate it
(Customers at end − new customers gained) ÷ customers at start × 100
Worked example
Starting with 1,000 customers, ending with 1,050 and gaining 150 new ones gives 90% retention.
Definitions vary. Some include customers who pause or downgrade, and others count retention by revenue instead of customer numbers. Check how your organisation calculates it.