<\/span><\/h3>\n\n\n\nThe retention rate formula is easy to use once the relevant factors have been worked out. <\/p>\n\n\n\n
It is important to disregard the new customers that have joined during the period in question, however, as this can artificially inflate the numbers. As such, the number of new customers (N) should be subtracted from the end of period total (E).<\/p>\n\n\n\n
After this, it is simply a case of subtracting the number of customers from back at the start of the period (S) and multiplying by 100 to find the percentage figure. <\/p>\n\n\n\n
The retention rate formula should ultimately be expressed as follows:<\/p>\n\n\n\n
Customer retention rate (CRR) = [(E-N)]\/Sx100<\/strong><\/p>\n\n\n\nA \u2018good\u2019 retention rate is a number as close to 100% as possible. However, depending on the strategy in play, it\u2019s sometimes more viable for a business to choose to lose out on retention in favour of gaining new, higher-value customers. <\/p>\n\n\n\n