Of course, a customer retention rate of 100% would be ideal, but even the largest companies in an industry rarely achieve this metric – and, more importantly, lower rates are far more common for small businesses. This value is approximately that of many industry-leading companies. When you plug these values into the customer retention rate formula, you get the following: Over this quarter, you gain 40 customers but lose 10. Let’s say that, at the beginning of the most recent quarter, your company had 120 customers. You can convert this decimal to a percentage by multiplying it by 100. When you calculate your customer retention rate, you will see a decimal as the value. Using the above variables, this is the customer retention rate (CRR) formula: Your number of lost customers matters only when calculating E, which is the sum of S and the difference between your gained and lost customers. As such, if you gain 30 customers but lose 12, use 30 for N, not 30 – 12 = 18. Note that N refers to the number of customers you gained, independent of whether you lost any customers.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |