What is user retention rate?
The user retention rate, also called the customer retention rate, is a key metric gauging the continuity of customers within a specified period, offering insights into the churn rate of your e-commerce business. It serves as a benchmark reflecting customer experience and satisfaction. This metric, measured across different periods based on industry standards, provides valuable information about customer loyalty. Understanding the user retention rate enables businesses to strategically address reducing churn and optimizing the potential of their existing customer base.
You can gain valuable customer feedback to understand how they can have a better customer experience with your shop. Getting repeat business from an existing customer is typically easier than seeking a new customer, so maximizing one’s customer retention strategy can boost the bottom line.