Frontdoor’s Retention Rate Rose to An-All Time High of 75%

Frontdoor, the largest provider of home service plans (HSP) in the United States, recently announced their retention rates rose to an all-time high of 75.7%. Renewals are a critical part of the Company’s HSP business model, accounting for 75% of Frontdoor’s HSP revenue in 2022.  A 1% improvement in retention rates increases the Company’s annualized revenue by ~$20 million.  The consistently high renewal rates show the value customers continue to find in home service plans even as providers continue to raise prices to account for inflation.