Retention Rate: What It Is and How to Calculate Customer Retention
Retention Rate (RR) is the percentage of users who remain customers of a product over a specific period.
Formula:
RR = (Current Customers − Customers Acquired During the Quarter) / Customers at the Beginning of the Quarter × 100%
Why calculate RR:
to evaluate product relevance in the market;
to analyze customer purchasing behavior;
to develop marketing strategies and budgets;
to reduce customer acquisition costs and improve retention of existing users.
Marketing terms in simple language.
SMM Team marketer glossary.
Modern marketing evolves so fast that it's impossible to know all terms and abbreviations. And it's not necessary. We've collected in one glossary concepts from digital marketing, SMM, analytics, advertising, automation, as well as from related fields — design, content and production.
Use search if you know the exact spelling of a term, or choose the letter you need to quickly find the meaning. Each term is explained simply and clearly — so that not only a specialist, but also a beginner taking their first steps in marketing can understand.
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