Customer Success Glossary

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

• Ensure Customer Renewal SuccessBLOC

Learn More

• The Complete Guide to Customer Retention
• How to Calculate the Cost of Customer Retention Versus Customer Acquisition
• How to Calculate and Improve Your Customer Retention Rate
• Customer Retention Metrics: The Metrics that Matter
• Driving Customer Retention and Growth
• Monster-Sized Tips on Customer Retention Strategies

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