Conversion & UX
Retention (DTC)
Quick definition
The rate at which existing customers continue purchasing. Drives LTV and lowers blended CAC payback.
What it actually means
Retention is the lever investors evaluate first because it compounds. Key metrics: 30, 60, and 90-day repeat rate, cohort-based revenue retention, time-to-second-purchase. Levers: post-purchase email flows, replenishment timing nudges, loyalty programs such as Smile and LoyaltyLion, VIP tiers, and subscription conversion. A brand with a strong month-6 repeat rate has a much higher LTV, and a faster CAC payback, than a brand with a weak repeat rate. Retention investments compound: a strong post-purchase flow pays back on every future cohort.