Top 6 customer retention metrics

Customer retention is crucial for sustainable growth and revenue, as it not only ensures repeat business but also increases the likelihood of recommendations, with studies indicating that a 5% increase in retention can lead to a 25-95% increase in revenue. Product analytics plays a pivotal role in understanding retention by tracking various metrics such as customer retention rate, churn rate, net promoter score (NPS), reactivation rate, repeat purchase rate, and time to value moments. These metrics provide insights into customer loyalty, the rate at which customers leave, their likelihood to recommend the product, and their engagement with the product over time. By analyzing these metrics, businesses can identify areas for improvement, tailor strategies to different customer segments, and ultimately enhance customer retention efforts.