Customer Success Glossary

Welcome to our list of common Customer Success terms. Keep up with our continually evolving industry and empower yourself with the latest Customer Success terms, definitions, and knowledge.

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Customer Retention Cost (CRC)

Customer retention cost (CRC) can be calculated by adding up all of the costs required to retain customers over a given period and dividing by the number of customers retained during that period. These costs can be averaged over your entire customer base or calculated per customer. Typically Customer Retention Cost is calculated on an annual basis.

Customer retention cost (CRC) is the total cost of retaining a customer, including all expenses acquired throughout the marketing and sales process to the point of transaction. Expenses can include the costs of:

  • Salaries, commissions and benefits for marketing and sales team members
  • Developing marketing content for blogs, social media and video platforms
  • Paid advertising for PPC, search engine marketing, social media and web retargeting
  • Web design and maintenance
  • Email marketing
  • Text marketing
  • Price comparison engines
  • Customer support for sales transactions

How to Measure CRC

CRC can be calculated by adding up all of the costs required to retain customers over a given period and dividing by the number of customers retained during that period. These costs can be averaged over your entire customer base or calculated per customer. Typically, CRC is calculated on an annual basis.

 

CAC = Total marketing and sales costs for customer acquisition / Total number of customers acquired

 

For example, if your acquisition-related marketing and sales costs for the year added up to $200,000 and you acquired 1,000 new customers over the year, your average CAC for the year would be $200 per customer.

 

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