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 Rate

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.

How to Measure CRR

To calculate your customer retention rate:

  • Take the total number of customers you have at the end of a given time frame, represented by E
  • Subtract any new customers (N) from E
  • Divide the difference of E-N by the number of customers you had at the start of the time frame (S)
  • Multiply by 100 to convert your result from a decimal to a percentage

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.

 

CRR = ((E-N)/S) X 100


Customer Retention Journey Templates

 

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