What is Customer Retention and how is it defined?

Identify the correct statements that accurately reflect the concept of retention especially in context of online businesses. Select all that apply:


  • Statement A: Customer retention is solely defined by the number of new customers a company acquires each quarter.

  • Statement B: An e-commerce site might define a customer as retained if they make repeated purchases each quarter, demonstrating satisfaction and engagement.

  • Statement C: Retention is less important for SaaS providers than for traditional retail businesses because of the nature of subscription services.

  • Statement D: Retention rate is calculated by determining the percentage of customers who remain active compared to the number at the start of the period.

Select the correct statements.

Choose the closest answer: