Customer Retention Rate- Guides & eBooks| edge CRM

What is in this guide?

Customer retention is the essential—but often overlooked—the foundation for growth in subscription-based services. Though you'd probably agree that the concept of customer retention is important, you're probably not taking the time or effort to calculate it right and try to improve it.

Customer Retention can prove to be hugely beneficial to any organization. In this guide, you’ll learn how you should calculate your organization’s customer retention rate, the mistakes you should avoid while calculating custom retention rate and how to improve your organization’s customer retention rate.

Things you’ll learn in this guide:

Basics of CRR

Customer retention rate is one of the most important metrics when working in SaaS, where businesses are dependent on retention rate.

How to calculate the CRR

The Customer Retention Rate can be calculated by using the formula. Have a look at the formula and calculate the CRR of your organization.

Mistakes made while calculating CRR

Make sure you avoid making these mistakes while calculating the CRR for your organization.

Tips to improve your CRR

Not able to retain your customers? Take a look at the tips that will certainly help you improve your Customer Retention Rate.

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.

The Customer Retention Rate can be calculated when the number of customers at the end of a period is subtracted from the new customers acquired during that time and divided by the total customers at the beginning of the period. This entire thing is then multiplied by 100.

A 100% retention rate is always good. Meanwhile, a 15% retention rate is usually bad. Whatever is in between varies by the industry. What may work for your niche can be unacceptable for another, and vice versa.

Customer retention increases your customers' lifetime value and boosts your revenue. It also helps you build amazing relationships with your customers. You aren't just another website or store.