Retention rate is a statistical measurement of the proportion of people that remain involved with a group from one time period to another.
The concept is used in many contexts, including marketing, investment, education, employee management, research, and clinical trials.
In a survey of nearly 200 senior marketing managers, 63 percent responded that they found the "retention rate" metric very useful.
[2] The purpose of the "retention rate" metric in a marketing atmosphere is to monitor firm performance in attracting and retaining customers.
[3] In the workplace arena, the purpose of the retention rate is to assist organizations with deciding when to take action in order to keep employees happy and motivated.
[4] According to a survey by CNN Money, the top 100 best companies to work for had less than a 3% turnover rate during a 12-month period.