Is 20% retention good?
For most industries, average eight-week retention is below 20 percent. For products in the media or finance industry, an eight-week retention rate over 25 percent is considered elite.
What is a good employee retention rate? Generally, an average retention rate of 90% or higher is what to aim for, meaning a company will want an average employee turnover rate of 10% or less. In 2022, the average turnover rate2 was around 9.3%. But this varies by industry, location, and job type.
A decent audience retention rate to aim for is at least 50%. This isn't a set benchmark as there is a lot that can affect your retention rate. There's no doubt that 100% is the holy grail of retention rates, but of course, that's pretty hard to achieve, and not every video can go up to this mark.
As a general rule, employee retention rates of 90 percent or higher are considered good and a company should aim for a turnover rate of 10% or less.
Your ideal CRR depends on your industry. However, as a general rule, 35% to 84% is considered a good retention rate. In SaaS specifically, 35% and higher over an eight-week time period is a great goal to aim for—even though that rate is lower than other industry benchmarks.
Retention rate is an important metric that calculates the percentage of users who continue using your product or service over a given time period. A high retention rate means your current customers value your product and are providing a sustainable source of revenue.
High employee retention rates indicate a satisfied workforce, and regularly measuring them can help you catch potential issues before they escalate. That's because calculating and tracking your employee retention rate helps you evaluate your strategies, spot areas for improvement, and make informed decisions.
The Benefits of Employee Retention
High retention rates can indicate a high level of engagement, superior performance, and better customer service. Engagement is particularly important as employees who care more about an organization's mission feel a sense of purpose in their roles and will perform better.
A high employee retention rate indicates that your organization is effectively managing the needs of its workforce—leading to greater loyalty and productivity, and a better overall working performance. A low employee retention rate could well signal potential issues within your team.
A time period which is often used to define retention rate is weekly retention. A user which returns to an application at least once a week for 6 weeks after their first use would have a 100% weekly retention rate for the first 6 weeks of their lifecycle.
What does 100% retention mean?
In more extreme cases lenders can impose a 100% retention meaning that they won't release any of the funds until the identified problems are fully resolved.
On average, a 40-20-10 profile is considered good retention ‒ 40% retention on Day 1, 20% retention on Day 7, and 10% retention on Day 30. But depending on the genre of the game, good retention rates may vary.
A business with a 90% retention rate would be considered very healthy — this indicates high customer loyalty and widespread satisfaction. A business with a 50% retention rate, on the other hand, has some work to do.
Net revenue retention (NRR) formula
If you're experience a high rate of account expansion, NRR can be above 100% and is often referred to as Negative Churn.
A retention rate of 90% or higher is considered to be a good retention rate, meaning organizations should strive for an average employee turnover rate of 10% or less.
A high retention rate means employees are engaged, satisfied, and committed to the organization. In contrast, a low retention rate suggests that there may be problems with the work environment, company culture, or other factors causing employees to leave.
It's expressed as a percentage of a company's existing customers who remain loyal within that time frame. (We'll get into the formula a little later.) For example, if your business starts the year with 10 customers and loses two of them, you have an 80-percent retention rate.
The perfect (not likely attainable) customer retention rate is 100%; the lowest customer retention rate, of course, would be 0%. Each industry has its own average CRR that lands somewhere in between, but the average customer retention rate across industries is 70% to 80%.
The average customer retention rate differs from one industry to another. For SaaS industries, the minimum CRR is 35 %. A high rate is 93 % and above.
2) Low employee retention leads to decreased productivity.
Actively disengaged employees are “more likely to steal from their companies, negatively influence their co-workers, miss work days, and drive customers away.”
What does good employee retention look like?
The idea behind employee retention is simple. If people are doing work that they care about, in an environment that they feel good in, and are being compensated well for it, they stay. When these factors are missing, people are generally on their way out the door. All three of these factors are critical.
- Cardinal Health, Inc. (TRR: 19.4)
- Northrop Grumman Corporation (TRR: 22.6)
- Merck & Co., Inc. (TRR: 24.7)
- Pfizer Inc. (TRR: 24.9)
- Verizon Communications Inc. ...
- Lockheed Martin Corporation (TRR: 34.3)
- The Procter & Gamble Company (TRR: 34.8)
- Best Buy Co., Inc.
According to Gallup, 10% turnover is healthy, but every industry and every organization is different. For example, Oracle founder Larry Ellison defended the organization's atypically high turnover, noting it was what allowed them to respond to industry changes.
A business's revenue can increase based on several benefits it can receive from employee retention, including better customer service, reduced hiring costs and optimized employee productivity. This can also boost a company's ROI, a metric that may help demonstrate to HR staff the value of retaining employees.
Effective employee retention can save an organization from productivity losses. High-retention workplaces tend to employ more engaged workers who, in turn, get more done. Engaged employees are more likely to improve customer relationships, and teams that have had time to coalesce also tend to be more productive.
The median employee tenure in the US is 4.3 years for men and 3.8 years for women. You've likely been told before that staying in your current position for at least a few years is important, and many Americans take this to heart.
SMB / Mid-Market SaaS: ~60% is GOOD, ~80% is GREAT. This includes companies such as Asana, Slack, and Atlassian that primarily sell a subscription product to companies roughly 100-1000 employees.
Seeing where your audience consistently leaves your content can help you understand them better and develop more engaging content in the future. Pro tip: Offer something in the beginning of the video, and even in your video's caption, that immediately draws your audience in.
This doesn't account for Netflix's original series. Netflix has a six-month customer retention rate of 72%. This means that six months after a group of people subscribe to Netflix, 72% will still be there six months later.
Viewers retain 95% of a message when they watch it in a video, compared to just 10% when reading it in text. (Insivia) 72% of customers would rather learn about a product or service by way of video. (HubSpot)
What does 50% retention mean?
Retention rate is used to describe the number of customers that continue to use or subscribe to a product during a specific time. And, as such, it's a vital indicator of a business's success. Customer retention rate in business is shown as a percentage of customers who continue with a service within a certain period.
Across SaaS and subscription-based companies, anywhere above 100% is considered a good net retention rate. NRR over 100% indicates growth via a consistent customer base, and that the revenue gained from upsells, cross-sells, and add-ons are larger than the revenue lost due to downgrades and churn.