A Complete Guide to Key Metrics of Retention Marketing for Different Niches

While attracting new customers is important in today's marketing landscape, it is only the first step. A business's true value is determined by its ability to retain those customers and activate users in the long term. Retention marketing aims to do precisely that: create long-term relationships with customers, increase their loyalty, and boost Customer Lifetime Value (CLV).

In this guide, I discuss the key user retention metrics and the tools you can use to track them. I also examine the nuances of these metrics for various niches, from e-commerce to SaaS and services, and how these differences affect the evaluation of chatbots and newsletters.

Key metrics for retention marketing

Retention marketing aims to retain existing customers and keep them continually engaged. There are several retention marketing strategies, and certain key metrics will help you measure the effectiveness of those strategies. These metrics allow you to assess user engagement and loyalty levels and make informed decisions about improving user interaction.

1. Retention rate

The retention rate (RR) shows the percentage of users who continue to use a product or service over a certain period of time:

• A high RR indicates effective acquisition and retention strategies, meaning customers are satisfied and motivated to return.

• Conversely, a low RR suggests issues with the product or marketing that could be causing user churn.

The formula for calculating customer retention rate (CRR):

CE is the number of customers at the end of the period.

CN is the number of new users gained during a certain period.

CS is the number of customers at the beginning of the reporting period.

2. Churn rate

The churn rate (CR) indicates the number of users who stopped interacting with the product during a specified period.

To calculate CR, you need to determine the following:

• The number of people who stopped using the product or service during the specified period.

• The total number of active users at the beginning of the reporting period. 

Use this formula to calculate churn rate:

CL is the number of customers who stopped using the product during a given period.

CB is the total number of active users at the beginning of the period.

3. Customer lifetime value 

Customer lifetime value (CLV) is an estimate of the total revenue a company will receive from a customer throughout their relationship with the brand.

The higher the CLV, the more profitable it is for companies to invest in retaining that customer because they will generate more profit in the long run.

The average revenue per user (ARPU) is the average revenue generated from one customer over a certain period of time.

The average customer lifespan (ACL) is the average length of the customer lifecycle.

4. Engagement rate

This indicator shows how actively users interact with content, products, or services.

It is calculated using the following formula:

5. Average session duration

This is the average amount of time that users spend on the platform during a single session.

• Longer interaction times indicate high levels of engagement.

• Sessions that are too short may signal problems with the content or user experience (UX) design.

You can calculate the average session duration using the following formula:

The total conversation time is the total duration of all interactions with the bot, in seconds or minutes.

The number of sessions is the total number of unique sessions.

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Tools for tracking metrics in chatbots

Retention marketing is impossible without a detailed analysis of user behavior. Fortunately, there are a number of tools that can track key metrics and optimize communication with your audience.

Built-in analytics capabilities of these platforms

Popular chatbot creation platforms, such as ManyChat, Chatfuel, Botsify, SendPulse, and Yespo, have built-in analytics modules that track key performance indicators:

• Open rate: how well users respond to communication.

• Click-through rate (CTR): the proportion of users who click on links in the bot.

• Interaction time: the amount of time users spend in a conversation.

• Conversions into target actions: these include purchases, subscriptions, and support requests.

The advantages of built-in analytics are that they are easy to use and provide quick access to key data without the need to configure additional integrations.

Integration with Google Analytics, Amplitude, and CRM systems

If you want to perform more in-depth data analysis, consider integrating chatbots with external analytics systems and CRMs.

• Google Analytics 4 can track user behavior and the actions they take before conversion.

• Amplitude provides advanced analytics of bot interactions, helping to identify churn and retention points.

• CRM systems, such as HubSpot, Salesforce, and Pipedrive, provide personalization, segmentation, and in-depth analysis of interaction history.

Integrations with these tools allow you to build advanced communication funnels, identify bottlenecks in bot scenarios, and enhance the user experience.

How does niche affect the choice of metrics for newsletters?

Naturally, each niche has its own communication specifics. These nuances directly influence the selection of metrics used to evaluate the effectiveness of email and chatbot newsletters. While the fundamental metrics — open rate, click-through rate, engagement rate, and conversion rate — are common to all niches, their importance and interpretation tend to differ based on business models and user behavior.

1. E-commerce 

The main goals of email campaigns in e-commerce are to encourage repeat purchases, remind customers about abandoned carts, and offer personalized recommendations. 

Key metrics:

• A high open rate (15–25%) indicates that subscribers are interested in the offers.

• A CTR of 2–5% reflects that the content is relevant and the calls to action are compelling.

• The email conversion rate (1–3%) shows how effectively the newsletter stimulates purchases.

These indicators may vary depending on the product type and level of personalization. However, high conversion rates generally demonstrate audience loyalty to the brand and the success of its campaigns.

2. SaaS services

For SaaS and subscription services, email marketing aims to attract and retain users by ensuring constant interaction with the product.

Key metrics:

• Engagement rate shows how actively users respond to content.

• Retention rate (50–70% after three months) indicates the likelihood of a user returning to the service after initial contact.

• Product adoption rate shows whether customers have started using key features after learning about them through the newsletter.

3. EdTech

In the field of online education, email newsletters aim to maintain motivation, remind students about the learning process, and encourage course completion.

Key metrics:

• Average session duration indicates the depth of interaction with the content.

• Course completion rate indicates the effectiveness of communication and the value of the educational program.

• Open rate (30-50%) reflects the students’ interest in the learning materials.

4. B2B

In B2B communications, newsletters have a long-term effect. They accompany customers throughout the entire transaction process, from initial contact to closing.

Key metrics:

• Open rate (20-35%) indicates the quality of database segmentation and content relevance.

• The lead-to-customer conversion rate (the conversion rate of leads to customers; 5–15%) demonstrates customers’ interest in the details of the offer.

• Customer lifetime value (CLV) determines the profitability of the acquired customers.

How does niche affect the choice of metrics for a chatbot?

Depending on the business model, the chatbot’s behavioral patterns, frequency of use, and expected value will vary significantly. Therefore, the set of priority indicators must be adapted to the audience's specific needs.

1. E-commerce

In digital commerce, virtual assistant chatbots can be very effective. They act as a channel for personalized interactions, help track user behavior, and provide timely reminders about products or promotions.

• Repeat purchase frequency shows how often a user returns. A high value indicates a successful customer retention strategy.

• The average order value of a regular customer is an important indicator that helps assess the effectiveness of upsells and cross-sells through the bot.

• Open and click rates signal audience interest in offers and willingness to follow links to websites or product cards.

2. Services and SaaS

In this field, chatbots act as assistants that automate support, train users, and encourage them to use the service's capabilities:

• Activity in the bot reflects how frequently users interact with the assistant to obtain information, learn, or perform specific actions within the service.

• The frequency of support requests is an important indicator. A decrease in this indicator as the user base grows indicates that the bot is effective as the first line of support.

• The number of continued subscriptions is a key indicator of the success of the retention strategy. To encourage long-term customers, bots can send reminders about updates, offer personalized discounts, and help resolve issues.

3. Media and content projects

Chatbots are a powerful tool for such platforms because they can deliver both content and personalized interaction recommendations. This encourages a loyal audience to grow and contributes to monetization:

• Time spent in the bot is a key metric for measuring engagement depth. The longer a user interacts with the content, the more likely they are to return.

• The number of subscriptions to updates indicates the users’ desire to receive content regularly through the selected channel.

• Click-through rate (CTR) on messages determines how often users proceed to read the full content after receiving a message.

Conclusions

1. When assessing the effectiveness of retention marketing, it is a must to perform proper analytics and correctly select the appropriate metrics.

2. There is no one-size-fits-all approach. Successful retention strategies are those that take into account the specifics of each niche:

• In e-commerce, for example, the frequency of repeat purchases and the average order value are key factors.

• In SaaS, retention, activity, and subscription renewal rates are crucial.

• In EdTech, key metrics include session duration and course completion.

• In B2B, it's long-term customer support and lead effectiveness.

• In media, it's the time spent on the platform and the depth of interaction with content.

3. Selecting the right metrics enables you to adapt communication strategies and measure effectiveness more precisely. As a result, you will be able to enhance the impact of retention campaigns on business outcomes.