What is month-over-month retention?
MoM retention is a measurement that shows you the percentage of customers that are retained from month to month; it's the opposite of your churn rate. To calculate your MoM retention, simply subtract your churn rate from 1. Let's say you have a churn rate of 10%. Using our formula, your retention rate is 90%.
How can I leverage MoM retention?
Knowing your MoM retention, like many other important metrics, gives you an idea of where your business stands in relation to your goals. Increasing your MoM retention means a lower churn which means less money spent on customer acquisition. Also, if you segment your MoM retention based on sales channel or customer demographics, you can get an idea of where you should focus your retention efforts.