Retention has four levels. Most brands are on level one.
Retention First Growth® · Appendix A. Four properties · four levels. Execution · Data · Momentum · Economics.
Level 1 · Broadcast
Execution · Static
Every recipient sees the same email. Movement is invisible.
Growth requires replacement acquisition every month.
The constraint · System cannot hold value across cycles.
What it looks like
- Sends run on a calendar · not a retention target.
- Welcome and browse-abandon flows set up once · never revisited.
- Reporting stops at open rate · click rate · last-click revenue.
What it costs you
- Discounting becomes the only lever when a month runs behind.
- Nobody can name which retention decision produced this quarter's revenue.
Observed performance bands
Klaviyo 2025 · n = 167,000+ accounts
- Campaign RPR · $0.08 to $0.12
- Repeat rate · 10-15%
These bands describe system behavior. They are not industry averages or optimization targets.
Next step · Make emails respond to behavior · not batch time.
Level 2 · Reactive
Data · Under-used
Data is collected. Almost nothing changes because of it.
Wins happen. They do not compound.
The constraint · Signals arrive too late or act too narrowly.
What it looks like
- Cohort and repeat-purchase dashboards exist and are read monthly.
- Segments built properly in Klaviyo but tested inconsistently.
- Loyalty and subscription sit in separate tools with separate numbers.
What it costs you
- Measurement is honest · decisions still rely on whoever argues best.
- Wins are real but unrepeatable because the reasoning is never recorded.
Observed performance bands
Klaviyo 2025 · n = 167,000+ accounts
- Campaign RPR · $0.15 to $0.30
- Repeat rate · 15-25%
These bands describe system behavior. They are not industry averages or optimization targets.
Next step · Give every orbit one score. Give every score one owner.
Level 3 · Coordinated
Momentum · Governed · Execution · Latent
Every orbit has a score. The system still cannot act on its own.
Compounding starts. Latency caps it.
The constraint · Execution latency limits compounding.
What it looks like
- A single Flywheel Health Index® score is reviewed on a fixed rhythm.
- Every retention move carries a hypothesis · an owner · a recorded outcome.
- Weak orbits get the next build slot.
What it costs you
- Retention performance becomes forecastable.
- Agency and in-house work is judged on the same scoreboard.
Observed performance bands
Klaviyo 2025 · n = 167,000+ accounts
- Campaign RPR · $0.40 to $0.70
- Repeat rate · 30-40%
These bands describe system behavior. They are not industry averages or optimization targets.
Next step · Remove decision latency. Let the system observe continuously and propose validated moves.
Level 4 · Compounding
All four properties live
The Flywheel runs itself. Retention becomes the operating layer.
Growth stops depending on acquisition volume.
The constraint · Sustained execution capacity.
What it looks like
- Signals across the stack are read continuously.
- Proposed moves arrive pre-validated with expected lift and confidence.
- Retention revenue funds acquisition · not the other way round.
What it costs you
- Customer acquisition cost inflation stops setting the growth ceiling.
- Returning value grows quarter on quarter without more headcount.
Observed performance bands
Klaviyo 2025 · n = 167,000+ accounts
- Campaign RPR · $0.75 to $0.97
- Repeat rate · 40-50%
These bands describe system behavior. They are not industry averages or optimization targets.
Next step · Keep humans approving the moves the system proposes.