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Retention

Retention refers to the extent to which customers or users return to use or purchase over time.

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First decide what you are measuring: return visits, repeat purchases, or subscription retention. The meaningful observation period varies depending on the product replacement cycle or service characteristics.

Comparing cohorts by acquisition timing and channel can help you understand changes. Rather than assuming that new acquisition costs are always a multiple of retention costs as a benchmark, look at actual costs versus customer value.

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