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Metrics
Retention Rate
The share of customers still active after a defined period. Meaningful only with the period stated, since 60 percent at 90 days and 60 percent at 12 months describe very different businesses.
Why it matters
Acquisition efficiency is bounded by it. A brand with weak retention has to keep buying the same growth, which is why CAC pressure often turns out to be a retention problem.
In practice
Measure by acquisition cohort and always state the window. A blended retention figure across cohorts hides whether it is improving.
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