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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:


  1. Start of the period: S = 1,000

  2. End of the period: E = 1,050

  3. New customers acquired: N = 200

Step-by-step:

  1. Subtract N from E: 1,050 - 200 = 850

  2. Divide by S: 850 ÷ 1,000 = 0.85

  3. 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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