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Glossary
Glossary

Retention

Retention measures the continuity of a relationship or activity over time. It can relate to a contract, an account, or a behaviour. The definition of an active customer and the observation window are essential. High retention can have several causes; it does not, in isolation, prove the effect of a programme.

Coup de Poing editorial team2 min
Measure performance

A concrete example

If 920 of the 1 000 customers present at the beginning are still active at the end, the cohort retention is 92%. New customers are not added to the numerator.

A point to consider

Retention and attrition are complementary only if the scope and exit rules are identical.

Maintain a stable initial user base

Define the initial cohort, then measure its evolution at various time points. Separate new members from retained members and specify how reactivations are handled. Account retention and revenue retention address different issues: a few large clients can maintain revenue, while many small accounts disappear. Present these readings separately if they inform your decision.

Questions to ask your team

  • Are you measuring people, accounts, or revenue?
  • Is the activity required to remain active the same at each renewal date?

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Glossary 2 min

Attrition

Attrition describes the loss of customers or the termination of a relationship according to a business definition. Explicit cancellation and prolonged inactivity are not the same thing. The inactivity threshold should be adapted to the buying cycle. A useful analysis examines cohorts and reasons for leaving.

Understand and apply
Glossary 2 min

Cohort

A cohort brings together people who share an event or starting point, such as the month of membership. Tracking it allows for the comparison of trajectories with similar maturity. The rules for entry, exit, and observation must be stable. It helps, in particular, to understand activation, consumption, and retention.

Understand and apply
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