Gross retention refers to the percentage of a company's customers or clients that remain with the company over a specific period of time. This metric is often used to measure the effectiveness of a company's customer retention efforts and to identify areas for improvement.
For example, let's say a company has 100 customers at the beginning of the year. After one year, the company has retained 80 of those customers. This means the company's gross retention rate is 80%, as 80 out of the original 100 customers have remained with the company.
Gross retention can be a useful metric for companies to track, as it can provide insight into the overall health and sustainability of the business. A high gross retention rate may indicate that the company is providing high-quality products or services, has strong customer relationships, and is effectively retaining its customer base. On the other hand, a low gross retention rate may indicate that the company is losing customers at an unsustainable rate and may need to improve its customer retention efforts.
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