CATEGORY > GLOSSARY
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.
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