Customer Retention Rate

What is Customer Retention Rate ?

The percentage of customers who continue paying the company after the first purchase.

How to calculate CRR?

CRR = E—N, (divided by) S x 100

E is existing customers at the end of a period.
N is new customers acquired during a period.
S is customers acquired at the start of a period.

Important of CRR

  • Customer Retention Rate informs businesses about they are truly growing or not.

  • Growth = More customers stay while you continue to add more.
  • Tips to increase Customer Retention Rate

  • Make it a point to deliver more than you what the user expects.

  • Clear up bugs as soon as they are reported.

  • Focus on making the UX as smooth and intuitive as possible.

  • Conduct surveys to understand if there are any usability barriers.

  • Keep community events like webinars and meetups.