Customer retention rate
Customer churn rate
Monthly recurring revenue (MRR) churn
Revenue growth rate from existing customers
Customer lifetime value
Net Promoter Score
Repeat Purchase Ratio
Returning customer rate
Customer retention rate
Customer retention rates measure how many customers were retained over a specific period. Customer churn (lost customers) and customer acquisition (new customers) both impact that rate.
To calculate your retention rate, take your total customers,canada numbers list subtract the number of new customers acquired, divide by the number of customers at the beginning of the period, and multiply by 100. The formula is: (Number of customers at the end of the period - New customers acquired) / Number of customers at the beginning of the period x 100 = Customer retention rate.
Customer churn rate
Churn is the percentage of customers lost. If your churn rate increases in response to a customer retention strategy you've recently launched, it could be an indication that the strategy isn't working.
Monthly recurring revenue (MRR) churn
This measures the revenue lost due to customer churn. Negative MRR trends indicate that it’s time to improve your customer retention strategy.
Revenue growth rate from existing customers
The formula is: Monthly Revenue Growth Rate = (Monthly Recurring Revenue at end of month - Monthly Recurring Revenue at beginning of month) / Monthly Recurring Revenue at beginning of month. This measures how well your customer retention program is working to drive repeat business and higher purchase amounts.
Customer lifetime value
This measures a customer's lifetime revenue potential based on projected repeat purchases. The formula is: Customer Lifetime Value = (Customer Value x Average Customer Lifetime). Since customer lifetime value is dependent on repeat purchases, an increasing value indicates the strength of the retention program.
Net Promoter Score
If you ask customers how likely they are to recommend or promote your products, their answer is key to finding the Net Promoter Score. The formula is: Net Promoter Score = (# of Promoter Scores / Total Respondents) - (# of Detractor Scores / Total Respondents).
Those with high scores are the most loyal customers. Those with average scores are at risk of churn. Those with low scores pose a threat to your brand because they spread negative comments about your business.
Repeat Purchase Ratio
This calculates the proportion of customers who make multiple purchases over a specific period compared to your total customer base. It’s an indicator of customer success. The higher the number, the more likely your retention program is successfully building customer loyalty.
Returning customer rate
How do you measure repeat business? Divide the number of customers who made multiple purchases by the number of unique customers. The formula is: Total customers who purchased more than once / Total of all customers = repeat customer rate. The higher the percentage, the better your retention strategy is working.