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Retention Rate

What is Retention Rate?

Retention rate measures the percentage of customers who continue using a company's product or service over a specific period. It’s calculated by dividing the number of retained customers by the total number of customers at the start of the period. The retention rate is essentially a measure of customer loyalty and is a crucial indicator for many businesses, especially those with subscription models.

Related terms

Average Days Delinquent
Average day(s) delinquent (ADD) is a metric that helps determine the efficiency of a company’s debt collection efforts.
Budgeting and Planning
Budgeting and planning is the process of setting financial goals, creating a detailed plan to achieve those goals, and allocating resources to various activities and initiatives within an organization.
Business Intelligence
Business intelligence (BI) refers to the use of technology, tools, processes, and methodologies to analyze and transform raw data into actionable insights for making informed business decisions.
Cash Conversion Cycle
The cash conversion cycle (CCC) measures the rate at which your business converts its investments and inventory into cash.
Cash Flow Coverage Ratio
A company’s cash flow coverage ratio (CFCR) clarifies its ability to pay its debts based on cash flow from operations.
Cash Flow Optimization
This strategy focuses on maximizing the inflow of cash while efficiently managing outflows to maintain a healthy liquidity position.