GLOSSARY
Retention Rate
What is Retention Rate?
DefinitionRetention rate is the percentage of customers still active after a given period. In subscription health it’s the single biggest driver of LTV - and the metric that determines whether a low CAC actually matters.
Formula
Retention rate = Customers still active at period end ÷ Customers at period startA GLP-1 or TRT program with 70%+ retention past month three has a fundamentally different business than one that churns 30% a month, even at identical CAC. Run the compounding: a 1,000-patient cohort at $299/month keeps ~531 actives at month six with 90% monthly retention (about $159,000 of monthly recurring revenue) but only ~118 at 70% retention. Treat month-three retention as the gate: if fewer than 70% of patients survive it, fix onboarding and clinical follow-up before scaling acquisition spend.
Related terms
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