Metrics > Customer Retention Rate
Customer Retention Rate
Definition: Customer Retention Rate measures the percentage of customers a business retains over a period.
Formula:
Retention Rate = [(Customers at End – New Customers) / Customers at Start] × 100
Why It Matters:
Higher retention leads to lower customer acquisition costs and increased lifetime value.
How to Improve:
- Offer loyalty programs and exclusive deals
- Provide exceptional customer support
- Regularly engage customers through email and social media
Relevant Integrations:
- HubSpot
- Salesforce
- CRM tools
Example Calculation:
If a company starts with 1,000 customers, gains 200 new but loses 100, then:
Retention Rate=((1000−100)1000)×100=90%