How high are their retention rates?

Retention rates vary across industries and business models. Here are some insights from experts on retention in different contexts:

1. HVAC Industry: Salespeople in the HVAC industry exhibit top decile retention rates, typically due to high commission-based compensation and the technical nature of their roles. This sector's complexity and relationship management necessitate keeping experienced personnel 1.

2. Consumer and SaaS Companies:

   • Consumer Social: Good six-month retention is around 25%, while great retention is 45%.
   • Consumer Transactional: Good retention is 30%, and great is 50%.
   • Consumer SaaS: Good at 40%, great at 70%.
   • SMB and Mid-Market SaaS: Good at 60%, great at 80%.
   • Enterprise SaaS: Good at 70%, great at 90% 2.

3. Subscription Services: Subscription businesses often have high retention due to consistent value and engagement. For example, a subscription business with substantial retention rates is anticipated to remain profitable for at least a decade based on its high margins and loyal customer base 3.

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     1

     HVAC Industry Insights

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     2

     Retention Metrics Explained

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     3

     Profitable Subscription Insights

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     4

     Chess Subscription Insights

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     5

     Retention Ratios

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4. Chess.com: Following the "Queen’s Gambit" show, Chess.com had a significant increase in subscriptions, albeit with lower retention from these new users. Despite this variance, the overall growth trend was positive 4.

5. Startup Products: For free products, weekly retention should be at least 60%, while for paid products, 20-30% is standard. Early benchmarks should be higher to account for enthusiastic early adopters 5.

These benchmarks and observations illustrate varying retention metrics depending on the industry and customer engagement strategies.