Know-How Exchange : Research/Metrics

By definition, the retention rate is the percentage of customers who were members at the beginning of a period, and remain at the end of the period.

total # of customers at start = x
# of customers at end = y
total # who left = z

(x-y)=z
(z/x)*100=retention %

for example:
100 customers total
25 left
(100-25)=75
(75/100)*100=75
75% retention

Dear sveetshz,

In Internet marketing continuity schemes, it's a safe bet to assume
a drop off rate of 20 percent.

This means for every 100 members, assume a drop out rate of 20. And as long as you pull in another 100 people in the following month, the end of month figure then becomes 200 in, 160 remaining.

I hope this helps.

Gary Bloomer
The Direct Response Marketing Guy™
Wilmington, DE, USA

I agree with Peter and Gary, though an appropriate benchmark for retention rate depends on the industry: your recreational services may be very ifferent from internet marketing continuity schemes. What exactly are you marketing: gym memberships,....?

koen