Clients & Retention

Client Retention Rate

Agency glossary · Updated July 2026

Definition

Client retention rate is the percentage of clients an agency keeps over a period, the inverse of churn. It measures how well the agency holds onto its existing relationships, which are far cheaper to keep than new clients are to win.

Formula((Clients at end - new clients won) / clients at start) x 100

Why it matters

Retention is the quiet engine of a profitable agency. A high retention rate means new business adds to growth instead of just replacing losses.

Benchmark

A healthy target is keeping 85 to 90% of clients a year; above 90% is strong, and below 75% points to a delivery or fit problem.

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