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Customer Retention Rate
Customer Retention Rate (CRR) measures the percentage of customers a company retains over a given period, reflecting its ability to keep customers coming back. It's calculated using the following formula:
Start of the period: S = 1,000
End of the period: E = 1,050
New customers acquired: N = 200
Step-by-step:
Subtract N from E: 1,050 - 200 = 850
Divide by S: 850 ÷ 1,000 = 0.85
Multiply by 100 to get a percentage: 0.85 × 100 = 85%
Result: CRR = 85%
CRR=(E−N)S×100CRR = \frac{(E - N)}{S} \times 100CRR=S(E−N)×100
Where:
E = Number of customers at the end of the period.
N = Number of new customers acquired during the period.
S = Number of customers at the start of the period.
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