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