Retention Rate

The retention rate is the measure of retaining satisfied customers and revenue in the returns process, measured by looking at the number of repeat purchases and accepted refunds.

‍By offering special promotions during the return process, such as credit for a new purchase, or a direct exchange, online stores strive to retain customers before returning the original product.

A rising Retention Rate indicates that more customers are choosing to make repeat purchases instead of initiating refunds.

How do you calculate the Retention Rate?

You calculate the retention rate by dividing the number of return requests that lead to a new sale by the total number of returned orders in the same period.

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