Jasz
VIP Contributor
Retention ratio is a key measure in finance. It refers to the number of accounts that are kept open for a given period of time. This metric is important because it helps companies gauge how well they are doing at retaining customers.
Retention ratio can be calculated by taking the sum of accounts that are still active after the specified time period and dividing it by total accounts at the beginning of this period. If retention ratio is high, then it means that the company has been successful at retaining customers.
For example, if a company has one million users who have opened an account with them but only 300,000 users are still active after six months, then their retention ratio would be 300,000/1000000 = 0.03 (or 3%).
Retention ratio can also determine the percentage of customers who stay with a company after a certain period of time. It is used to measure loyalty and retention among customers.
Retention ratio can be calculated by taking the sum of accounts that are still active after the specified time period and dividing it by total accounts at the beginning of this period. If retention ratio is high, then it means that the company has been successful at retaining customers.
For example, if a company has one million users who have opened an account with them but only 300,000 users are still active after six months, then their retention ratio would be 300,000/1000000 = 0.03 (or 3%).
Retention ratio can also determine the percentage of customers who stay with a company after a certain period of time. It is used to measure loyalty and retention among customers.
