Definition
Retention rate
Retention rate is the share of guests who come back over a given period, the positive mirror of churn.
Retention rate asks a plain question: of the guests you had at the start of a window, how many returned by the end. It is the direct inverse of Churn, and for a restaurant it is the quiet engine of profit, because acquiring a new guest costs far more than keeping an existing one. A few points of retention move the business further than most advertising does.
Retention is what compounds Customer lifetime value (CLV): a guest who returns every month is worth many times a one-timer, on the same acquisition cost. The levers are a memorable experience (74% return after a unique experience), a Loyalty program that rewards coming back, and timely follow-up such as a Win-back campaign. None of it is possible without First-party data, because you cannot improve a number you cannot see.
CRM and loyalty tools (Bikky, Thanx, Marsello) tie order history to guest profiles, compute recency and repeat rate, and automate the touches that lift them. See loyalty and retention.
See it in action
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