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TERM
Retention
Percentage of buyers who repurchase within a defined period.
Definition
Retention measures loyalty by tracking repeat purchases among prior buyers.
How to Calculate
Divide number of repeat buyers by total buyers in the prior period and multiply by 100.
Why it Matters
Shows brand stickiness and helps plan loyalty programs.
Key Advantages
Improves forecasting, reduces acquisition costs, and supports lifetime value growth.
Example
If 300 of 1,000 buyers return, retention is 30 percent.
Use it to
Measure the percent of prior‑period buyers who return to purchase again to size retention. Identify cohorts with the steepest loss to focus loyalty‑building efforts.















