Customer Retention Rate

What Is The Customer Retention Rate?

The customer retention rate represents the proportion of customers who maintain their business relationship with a company during a specific timeframe. It's calculated by deducting the churn rate from 100%.

How to Calculate Customer Retention Rate?

Customer Retention Rate = 100% - Churn Rate

An Example Of The Customer Retention Rate

A company has a churn rate of 10%.

Customer Retention Rate = 100% - 10% = 90%

Insights About Customer Retention Rate

Customer retention rate is an important metric for measuring customer loyalty and the success of customer success programs.

A high retention rate indicates that customers are satisfied with the product, service, and experience.