Calculating retention rate is easy, just follow this equation

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Increase brand awareness and improve reputation through word of mouth from your loyal customers .
The opportunity to create a long-lasting and stable relationship with customers.
The ability to identify and correct problems by receiving feedback and listening to your customers' needs.
Loyal customers are more willing to try or experiment with new products. Six times more likely, according to studies.
Loyal customers are more forgiving of mistakes, which means fewer angry customers.
How to calculate customer retention rate
customer retention rate

Before you begin creating a customer retention plan, you need to know and understand your current customer retention rate. This number will show you the percentage of your customers that are sticking around.


((Number of customers at the end of a period – number of laos email list customers acquired during that period) / number of customers at the beginning of the period) X 100 = customer retention rate

Let's analyze each parameter.

First, you need to define the time period. This is completely up to you, it could be monthly, quarterly, yearly, or whatever works for you and your business.

Keep in mind that when calculating the number of customers at the end of the period, you must also take into account any loss of customers.

For example: You have 10,000 customers at the beginning of the period. During that period, you acquired 5,500 new customers, but lost 2,500 due to. This means that at the end of the period, you will have 13,000 customers.

The equation would be this:

((13,000 – 5,500) / 10,000) X 100 = 75

Customer retention rate = 75%

Why is this number so important? It tells you how well you are able to keep your customers coming back. To give you an idea, it has been reported that a retention rate greater than or equal to 35% in ecommerce or SaaS models is extremely positive.

10 Tips to Increase Your Retention Rate
There are many ways to increase your customer retention rate. From social media engagement to email marketing , from inbound marketing to setting realistic expectations, here are 10 tips to increase your customer retention rate.