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%.