Customer retention rate is the percentage of existing customers who remain customers after a given period. Your customer retention rate can help you better understand what keeps customers with your company, and can also signal opportunities to improve customer service. Once you understand how well or poorly your company retains customers, you can work to improve your customer retention rate.
Formula
CRR = ((E-N)/S) X 100.
- S = The number of customers (or amount of revenue) you had at the period’s start
- E = The number of customers (or amount of revenue) at the period’s end
- N= The number of new customers (or revenue)