Indicates the percentage of customers who continue doing business with a company over a specific period.

What it Measures ?

How many existing customers keep coming back.

Relevant StakeHolders 

Retention Marketers, Customer Support

In-depth Use Case / Real-world Example

This metric highlights how well a company maintains customer relationships over time. It’s calculated as: ((End Customers – New Customers) / Start Customers) × 100. In a manufacturing scenario, retaining B2B clients for long-term contracts or repeat orders reduces cost pressure and improves lifetime value. For example, if a company starts the year with 500 customers, adds 100 new ones, and ends with 520, the retention rate is 84% ((520-100)/500). A high retention rate means customers are satisfied and loyal, and it reduces pressure on new customer acquisition. Marketers use this KPI to assess the impact of customer engagement strategies, post-sales service campaigns, and educational content. Retention strategies often include personalized email campaigns, webinars, product training, and loyalty offers. Monitoring this KPI regularly helps pinpoint issues in service, support, or expectations that may cause churn. It also supports account-based marketing strategies, especially in B2B environments where relationship quality drives long-term value.