What is retention rate?
Retention rate is the percentage of customers, users or revenue retained over a defined period — the inverse of churn. Standard formulations include customer retention rate, dollar retention rate (gross and net), and cohort retention curves.
Retention is the foundation of compounding growth in subscription businesses. Net Dollar Retention (NDR) above 120% is considered best-in-class for B2B SaaS and is a primary input into IPO valuations.