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Retention

retention · retention rate

Retention — the percentage of clients who remained active during the period. The inverse metric to churn (retention = 100% − churn).

Retention — retention, the percentage of clients who remained active during the period. The inverse metric to churn: if monthly churn is 5%, then monthly retention is 95%.

In reality, retention is considered differently in different businesses: - N-day retention: % of clients returning N days after the first visit (for example, day-7 retention for an application) - Cohort retention: % of cohort remaining active after N months - Revenue retention: % of revenue from existing customers after N months (takes into account upsell/downsell)

In b2b SaaS, Net Revenue Retention (NRR) is especially important. A healthy NRR > 100% means that existing customers are bringing in more money every month due to the expansion of tariffs. Best-in-class - NRR 130%+.

In my projects, I improved retention through: personalized emails (Klaviyo / Mindbox), in-app messages, loyalty programs, content nurturing. The main thing is not to “write more often”, but to be useful at the right moment in the client’s life cycle.

Frequently asked questions about Retention

What is retention rate?+
Retention rate is the percentage of clients who remained active during the period. The inverse metric to churn: if monthly churn is 5%, then retention is 95%. They count in different ways: N-day retention (returned after N days), cohort retention (cohort is alive after N months), revenue retention (revenue from the same clients).
What is NRR and why is it more important than retention?+
NRR — Net Revenue Retention, the percentage of revenue from existing customers over a period, taking into account upsell and downsell. An NRR of 110% means that even without new customers, revenue is growing by 10% due to expansion. Best-in-class B2B SaaS - NRR 130%+.

Related terms

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