Retention curve - woosniper.com

What is customer Retention?

It is your business’ ability to make customers return to your shop over time.

Who are my retained customers?

Customer from a specific period who also purchased from you before that period. You can split total active customers of a period into new customers and retained customers.

How do I split my retained customers?

You can split retained customers into continuous active and reactivated customers. Continuous active customers are the sub-set of retained customers that has also been active in the immediate period before the actual one. Reactivated customers are the part of retained customers that have not been active in the preceding period, but in any period before.

How do I measure retention rate?

A simple way to measure retention rate is to divide your retained customers of a period by all customers that existed in your system at the begin of that period.

However, by doing so you always also count those customer that you have lost long ago. Which is falsely impacting your retention rate in a negative way.

A more practical way to measure retention rate is therefore to disregard reactivated customers and to divide continuous active customers of a specific period by all customers of the preceding period.

How do I compute retention?

The following example explains how retention rate is computed in WooSniper.

However retention rate of one month is not telling you much where your business is trending. You better focus on how retention rate develops over time. The aim is to take measurable actions that turn your retention rate from a flat cure into an up-sloping one.

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