Marketing, sales and customers

Retention

  • Marketing, sales and customers

Definition

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.