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.Create a Free Account
Customer retention rate is the percentage of customers who remain with you over a given period. Any customers you don’t retain contribute to churn. The higher your retention rate, the lower your churn. Your customer retention rate (CRR) measures the number of customers you retain over a given time frame. This procedure can be summed up by the formula: ((E-N)/S) X 100 = CRR | E= Total Customers at the end, S= Total Customers at the beginning; N= New customers.
To calculate your customer retention rate:
If the difference between E and N is equal to S, you will have a 100% retention rate. Any lost customers will lower your retention rate.