Calculate and analyze user retention metrics to understand customer loyalty
pm4Category: product-marketingCalculate annual customer retention rate to measure cohort loyalty and predict lifetime value
Users Retained
850
Churn Rate
15.0%
Retention Rate
85.0%
Your cohort started with 1,000 users and retained 850 users over one year, resulting in a 85.0% annual retention rate with Good performance. With a 15.0% annual churn rate, the average customer lifetime is approximately 6.7 years before churning.
Annual retention rate measures the percentage of customers who remain active over a one-year period, calculated by dividing ending users by starting users. This cohort-based analysis excludes new user acquisition to focus purely on customer loyalty and product stickiness.
Churn rate, the inverse of retention, directly determines average customer lifetime. Higher retention compounds over time, as retained customers generate recurring revenue and often increase spending through upsells and cross-sells. Industry benchmarks vary widely, with SaaS companies typically targeting 85-95% annual retention while consumer apps may see 40-60% retention.
Users Retained
850
Churn Rate
15.0%
Retention Rate
85.0%
Your cohort started with 1,000 users and retained 850 users over one year, resulting in a 85.0% annual retention rate with Good performance. With a 15.0% annual churn rate, the average customer lifetime is approximately 6.7 years before churning.
Annual retention rate measures the percentage of customers who remain active over a one-year period, calculated by dividing ending users by starting users. This cohort-based analysis excludes new user acquisition to focus purely on customer loyalty and product stickiness.
Churn rate, the inverse of retention, directly determines average customer lifetime. Higher retention compounds over time, as retained customers generate recurring revenue and often increase spending through upsells and cross-sells. Industry benchmarks vary widely, with SaaS companies typically targeting 85-95% annual retention while consumer apps may see 40-60% retention.