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. The exact definition depends on the context. As a general rule, high retention corresponds to a positive outcome.
In marketing, retention rate count customers and their activity irrespective transactions they make.
In a survey of nearly 200 senior marketing managers, 63 percent responded that they found the "retention rate" metric very useful.