METHODOLOGY

How we measure retention

SHORT ANSWER

Retention results are meaningful only when the metric, baseline, cohort, time window and limitations are clear. Loiale evaluates repeat behaviour, cohort LTV, contribution margin and incremental impact in context; attribution alone is not proof of causality.

Most retention reporting measures the channel, not the customer. We measure the customer: what a cohort does over time, and what changed after we changed something.

Written by Jaume RosReviewed by Jaume Ros, Loiale teamLast updated 2026-08-05
Open notebook with hand-drawn system diagrams next to a laptop on a concrete desk

The primary frame: cohorts, not campaigns

A cohort is every customer who made a first purchase in the same period. We track what that group does at 30, 60, 90, 180 and 365 days. Campaign-level revenue is an input, never the headline.

The metrics we hold ourselves to

MetricDefinition we useWhy it is here
Repeat purchase rateShare of a cohort with two or more orders by day NThe cleanest signal that retention work is landing
Cohort retention rateShare of a cohort still purchasing or active at day NShows whether customers stay in the relationship
Customer LTVExpected contribution margin per acquired customer over a fixed horizon, discounted when appropriateThe long-term value of the customer, not the channel
Revenue per recipientRevenue per message or contact, but only as a diagnostic, not a targetKeeps efficiency visible without making it the goal
Contribution marginRevenue minus variable costs including COGS, rewards and payment feesPrevents growth that looks good but destroys margin
Time to second orderMedian days between first and second orderMoves earlier than LTV does
Contribution per lifecycle momentRevenue attributable to a specific moment, measured against a holdout where one is possibleKeeps the loop honest about which moment did the work
Program economicsCost of rewards and margin impact against incremental behaviourLoyalty has to pay for itself

Attribution: what we will and will not say

  • Where a holdout is possible, we run one and report against it.
  • Where a holdout is not possible, we say so and report the change as directional.
  • We do not report platform-attributed revenue as incremental revenue.
  • We do not report a lift we cannot reproduce in the client's own data.

Reporting cadence

Weekly: experiment read-outs. Monthly: cohort trajectory and business review. Quarterly: a meta-review of which categories of change actually moved the curve.

Benchmarks

We do not publish retention benchmarks we have not collected under a disclosed method.

SOURCE REQUIRED · Any benchmark figures on this page require a documented dataset and methodology before publication. See the benchmarks methodology page.

KEEP READING

Request a measurement review

We build and run lifecycle, loyalty and customer-data systems inside your existing stack. Tool-agnostic. Outcome-owned.

Request a call