Product metric

Customer Retention

Formula

Users active in period N ÷ users in cohort

Worked example

You spent ₹4,00,000 last month across ads, tools and sales time, and acquired 80 customers. That's ₹5,000 per customer. If gross profit per customer is ₹1,250 a month, you get the money back in four months.

Why it matters

It tells you whether growth is affordable at your current margin and runway — before you scale spend.

When it can mislead

Blended numbers hide the truth. One organic channel can make a failing paid channel look healthy. Segment by source before deciding.

Related metrics

Experts who can help

Er. Sonal Sinha

Er. Sonal SinhaVerified

Startup Mentor & Entrepreneurship Educator

Founder, Youthpreneur India

Helps with

  • · Building a startup from idea to scale
  • · Designing youth entrepreneurship programs
EntrepreneurshipInnovationLeadership
Available this week
Arjun Malhotra

Arjun MalhotraVerified

Fractional CTO

Ex-Swiggy

Helps with

  • · Choosing an MVP architecture you won't regret
  • · Hiring your first engineers
MVP ArchitectureEngineering TeamsTechnical Hiring
Next slot Thursday