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 every DTC investor evaluates first because it compounds. Key metrics: 30/60/90-day repeat rate, cohort-based revenue retention, time-to-second-purchase. Levers: post-purchase email flows, replenishment timing nudges, loyalty programs (Smile, LoyaltyLion), VIP tiers, subscription conversion. A brand with 35% repeat rate at month 6 has 2-3x the LTV (and effective CAC payback) of a brand at 15%. Retention investments compound — adding a strong post-purchase flow pays dividends on every future cohort.