It’s like working with a leaky bucket when a product has poor customer retention. Sustainable growth and revenue become much more difficult to achieve if existing customers do not return to your product.
Here are four key customer retention metrics that you’ll want to see trending upward in your product analytics.
Rate of customer retention
Understandably, the customer retention rate is the most important metric for customer retention. This metric measures how many customers stick with your product over time. The customer retention rate provides an indication of how loyal your customers are.
Churn rate
Another metric of customer retention is the churn rate, which measures how many customers actively leave. While some churn is normal for a product, it is critical not to let churn spiral out of control.
Net promoter score (NPS)
While it may appear enigmatic, net promoter score is linked to a single key question: How likely is a customer to recommend your product to others? You’ve almost certainly seen this question in any customer feedback survey at an online store, and it’s still an important part of customer retention.
Repeat purchase rate
Customers who return are more loyal and willing to refer others. The higher your repeat purchase rate, the happier your customers will be.
Customer retention isn’t an exact science, but tracking these metrics will assist your team in prioritizing and strategizing on how to keep users.
