Customer retention rate is measured by dividing the total number of users gained for a given period by the number of users at the start of the period.
The average retention rate for different industries is as follows.
- For e-commerce industries, the average customer retention rate of 38% and more is considered above average.
- For news and media publishers, the above-average customer retention rate is 25% or more.
- For SaaS companies, the above-average customer retention rate is 35% or more.
- Most applications and software have an average retention rate of 6-20%.