What is Customer Retention Rate?
Customer retention rate refers to the capacity of a product selling company to keep its customers over a specific period of time.
How Do You Calculate The Customer Retention Rate
To get the customer retention rate, get the amount of customers you still have in thecurrent time period and divide it to the previous time period, perhaps over a time period of six months to one year. Multiply the result by 100 to get its percentage.
Customer Retention Rate = (Amount of Customers per Time Period ÷ Amount of Customers On The Same Length in The Previous Time Period) x 100