Determine your client retention rate.

The initial interaction is when customer retention starts. The client can join your email list or "like" your page on Facebook. Unless the client takes explicit action, such as unfollowing your page or unsubscribing from your email list, the relationship will continue.

You only need three numbers to calculate your customer retention rate:

Clients at the beginning of a specified period
By the conclusion of the time, customers
earned new clients throughout that time
Take the total number of customers you have at the end of the time and subtract the total number of new customers you gained during that period to determine your customer retention rate. Then divide that result by the initial number of clients. Your client retention rate is 85%, for instance, if you start a month with 100 customers and 85 of them are still with you at the end of the month. Here is an easy formula:

Customers you begin with minus (customers you finish with minus new customers)

You can calculate it as a percentage by multiplying your response by 100.)

Let's imagine you have 107 clients at the beginning of a month. You got 21 new clients while losing eight within that time period. This indicates that by the end of the time period, you will have 99 of your original customers and 21 new ones. At the conclusion of the time period, you now have 120 clients. Put the figures into the formula as follows:
(((120-21)/107) x 100) is the customer retention rate.

During that time, your retention rate was 92.5%.

If your customer retention rate is 100%, you haven't lost a single client. You lost them all if your retention rate was 0%. Using customer-centric best practises, you can increase any number you start with.

Created: 04/06/2023 00:40:55
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