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Retention Rate
What is Retention Rate?
Retention Rate measures a company's ability to keep its existing customer base, which is often a stronger indicator of health than new customer acquisition. It is a key KPI (Key Performance Indicator) for SaaS companies.
Why Retention Rate Matters in SaaS Growth?
High retention is the foundation of scalable SaaS profitability, as retaining a customer is far cheaper than acquiring a new one.
- Profitability: It increases Customer Lifetime Value (CLV) and drives scalable ROI (Return on Investment).
- Product-Market Fit: A high retention rate validates that the product (and the experience surrounding it) is solving a core problem for the User Persona.
- Website Support: A frictionless Knowledge Base and clear User Flow reduce support costs and user frustration, boosting retention.
Example from Flowtrix Projects
For our SaaS clients, Flowtrix designs the marketing site and adjacent support portals to improve long-term Retention Rate. We ensure the Onboarding Flow is clear, the Knowledge Base is easy to navigate, and the overall site User Experience (UX) is fast and frustration-free, providing a digital environment that maximizes Customer Lifetime Value and business ROI.
Categories:
Growth
Related Terms:
Master Webflow.
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