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Retention rate
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==Purpose== The purpose of the "retention rate" metric in a marketing atmosphere is to monitor firm performance in attracting and retaining customers. "Only recently have most marketers worried about developing metrics that focus on individual customers. In order to begin to think about managing individual customer relationships, the firm must first be able to count its customers. Although consistency in counting customers is probably more important than formulating a precise definition, a definition is needed nonetheless. In particular, we think the definition of and the counting of customers will be different in contractual versus non-contractual situations."<ref name=Marketing_Metrics /> Since there are multiple definitions of retention rates this could cause issues with interpreting retention rates in practice.<ref>{{Cite journal|last=Wierckx|first=Patrick J.|date=2020-10-11|title=The Retention Rate Illusion - Understanding the Relationship between Retention Rates and the Strength of Subscription-Based Businesses|url=https://papers.ssrn.com/abstract=3629281|language=en|location=Rochester, NY|ssrn=3629281 }}</ref> In the workplace arena, the purpose of the retention rate is to assist organizations with deciding when to take action in order to keep employees happy and motivated.<ref>{{cite web|url=http://smallbusiness.chron.com/average-employee-retention-rate-18799.html |title=The Average Employee Retention Rate | Chron.com |website=Smallbusiness.chron.com |date=2011-08-15 |accessdate=2016-08-10}}</ref> According to a survey by CNN Money, the top 100 best companies to work for had less than a 3% turnover rate during a 12-month period.<ref>{{cite web|url=https://money.cnn.com/magazines/fortune/bestcompanies/2011/turnover/ |title=100 Best Companies to Work For 2011: Turnover - from FORTUNE |website=Money.cnn.com |date=2011-02-07 |accessdate=2016-08-10}}</ref> Retention rate may also refer to ''[[college]]s''. According to the [[FAFSA]], the retention rate is the percentage of a school’s first-time, first-year [[undergraduate]] students who continue at that school the next year. For example, a student who studies full-time in the fall semester and keeps on studying in the program in the next fall semester is counted in this rate.<ref>{{cite web|url=http://www.fafsa.ed.gov/help/fotw91n.htm |title=What are graduation, retention, and transfer rates? |website=Fafsa.ed.gov |date=2013-04-04 |accessdate=2016-08-10}}</ref>
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