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The Madison Avenue Field GuideA field guide to marketing & advertising, by Brandon Mina

GlossaryMeasurement & AttributionRetention Rate

Measurement & Attribution

Retention Rate

The percentage of customers who remain active or keep buying over a given period.

By Brandon MinaCEO, BrandPilot AIUpdated November 2026

Short answer

Retention rate is the percentage of customers who remain active or keep buying over a given period. It is a core indicator of customer satisfaction and product value, especially for subscription and repeat-purchase businesses. Because keeping customers is often cheaper than acquiring new ones, small retention gains can significantly improve lifetime value.