Retention Rate

Retention rate measures how well a company keeps its customers or employees over a specific period. It indicates the percentage of people who continue using a product, service, or working for a company after a certain time. A high retention rate suggests good satisfaction and loyalty, while a low rate may signal issues. For example, if 100 customers start using a service and 80 are still active after a year, the retention rate is 80%. This metric helps organizations understand their ability to maintain relationships and improve their offerings.