Retention Rate measures how many customers stay active across a period, the inverse of churn and a direct input to lifetime value. High retention means growth compounds instead of leaking out the bottom. On marketplaces retention usually tracks liquidity: buyers stay when they reliably find supply, and sellers stay when they reliably find sales.
Retention Rate
The share of customers who keep using your marketplace over a period.
What it is
Formula
Retention Rate = ((Customers at End of Period - New Customers Acquired) ÷ Customers at Start of Period) × 100%