The specific retention rate that is considered "good" will depend on the industry and the type of business, but generally speaking, a high retention rate is desirable. For example, for businesses with a subscription-based model, a retention rate of around 80% or higher is considered good. This means that out of 100 customers, 80 are still actively using the product or service after a given period of time. However, for businesses with a different model or in different industry, the benchmark might differ. A business that has a high churn rate (customers leaving) would want to improve their retention rate. For example, in e-commerce the industry average is around 65-70% retention rate, while in the mobile app industry, the benchmark is around 40-50%. It's important to keep in mind that retention rate should be in comparison with industry benchmarks and also with your own previous retention rate (if you have historical data). Also, you can use different retention rate metric depending on the specific area of your business that you want to improve. Overall, a high retention rate is a sign of a healthy and sustainable business, as it means that customers are satisfied and continue to use the product or service. To satisfy customers, you'll need to regularly conduct market research on them. When it comes to research, please note, I'm a vendor, so I'm rather biased about my own product, and will say that online market research is the way to go to keep any business in the know of its customers. I doubt you have the time and energy to conduct in-person interviews or send out paper surveys. In today's day and age, you can quickly learn about your markets with online market research. For context: Pollfish is a mobile survey platform that allows businesses and researchers to collect data from a panel of participants via their smartphones. It can be used to conduct surveys on a variety of topics and to reach a wide range of demographics. One of the benefits of using Pollfish is that it allows you to reach a large, diverse panel of participants quickly and easily. Additionally, because the surveys are completed on mobile devices, they can be easily taken on the go, which can increase response rates. Feel free to check us out. Answer from pollfish_official on reddit.com
Reddit
reddit.com › r/saas › what retention rate is good?
r/SaaS on Reddit: What retention rate is good?
January 11, 2023 -
Hello product hunters?
Recently I was thinking about the importance of active users when building a strong startup.
My current returning users rate is around 25-30% for my product Affistash.com.
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What about you? I'm curious on what you guys have going on : )
Top answer 1 of 5
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The specific retention rate that is considered "good" will depend on the industry and the type of business, but generally speaking, a high retention rate is desirable. For example, for businesses with a subscription-based model, a retention rate of around 80% or higher is considered good. This means that out of 100 customers, 80 are still actively using the product or service after a given period of time. However, for businesses with a different model or in different industry, the benchmark might differ. A business that has a high churn rate (customers leaving) would want to improve their retention rate. For example, in e-commerce the industry average is around 65-70% retention rate, while in the mobile app industry, the benchmark is around 40-50%. It's important to keep in mind that retention rate should be in comparison with industry benchmarks and also with your own previous retention rate (if you have historical data). Also, you can use different retention rate metric depending on the specific area of your business that you want to improve. Overall, a high retention rate is a sign of a healthy and sustainable business, as it means that customers are satisfied and continue to use the product or service. To satisfy customers, you'll need to regularly conduct market research on them. When it comes to research, please note, I'm a vendor, so I'm rather biased about my own product, and will say that online market research is the way to go to keep any business in the know of its customers. I doubt you have the time and energy to conduct in-person interviews or send out paper surveys. In today's day and age, you can quickly learn about your markets with online market research. For context: Pollfish is a mobile survey platform that allows businesses and researchers to collect data from a panel of participants via their smartphones. It can be used to conduct surveys on a variety of topics and to reach a wide range of demographics. One of the benefits of using Pollfish is that it allows you to reach a large, diverse panel of participants quickly and easily. Additionally, because the surveys are completed on mobile devices, they can be easily taken on the go, which can increase response rates. Feel free to check us out.
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A solid retention rate really depends on your industry, but generally, anything above 20% is a good starting point. For SaaS, 35%+ is ideal. E-commerce? Aim for 25%+. But here’s the thing—focus less on “what’s good” and more on improving your own rate consistently. If it's growing, you're winning!
Videos
PeopleKeep
peoplekeep.com › blog › how-to-calculate-hr-employee-retention-rates
How To Calculate Your Employee Retention Rate
March 31, 2025 - Your retention rate complements your turnover rate metric. Analyzing both together gives you a holistic view of employee transition compared to either metric alone. Talented workers are your organization’s most valuable asset. Without it, you won’t be able to achieve business goals or drive key initiatives. That’s why retention should be one of your top concerns. Almost 40 million people quit their jobs in 20241. While this is an 11% reduction from 2023 quit rates, any significant employee turnover disrupts the flow and success of a functioning business.
Baremetrics
baremetrics.com › academy › retention-rate
Retention Rate - Baremetrics
June 28, 2024 - It’s important to regularly conduct ... can use to boost retention, which means boosting revenue, too. Simply put, a good retention rate is as close to 100% as possible....