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Retention Rate

By Dan Kurtz 1 min read

Retention rate is the inverse of churn: the percentage of customers who stay through a given period. For subscription businesses, it’s often measured monthly and cohort-analyzed to spot changes over time.

Improving retention by even a few points has an outsized effect on LTV. A business with 90% monthly retention has customers worth 3x more than one with 80% monthly retention, all else equal.

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