Along the same lines and from the perspective of other authors cit in the study, loyalty is defin as the relationship between the attitude of consumers towards a company’s offer and the degree of loyalty in their purchasing behavior .

So what is customer retention? It is a strategy that aims to achieve customer loyalty (attitude and purchasing behavior) and turn them into brand ambassadors, so that they recommend the brand to their immiate circle (family and friends) and within their online and offline community.

If you found it interesting to know what customer retention is, let’s look at the formula so you can implement the measurement of this indicator in your company.

The Customer Retention Rate (CCR ) KPI is calculat for a specific period, so the first thing you ne to do is define which period to evaluate. This indicator can be measur monthly, quarterly, half-yearly, annually, or according to the company’s nes.

The formula for Customer Retention Rate is:

So after defining the period to be evaluat, you must have the following data to apply it:

S= Number of clients you have at the beginning of the select period.

E= Number of clients you have at the end of the select period.

Number of customers gain in the select period.

This means that the customer retention rate is obtain by subtracting the final customers, minus the new customers, divid by the whatsapp number database initial customers and the result, multipli by 100.

For example: if at the beginning of the quarter you have 300 customers, during the period you get 600 orders from new customers and at the end of the period you have a total of 700 customers, then:

For the analysis of this indicator it is important to consider that:

The higher the retention rate, the julianne anderson senior operations manager more customers you are retaining, which means better benefits for your business.

Every business has a different b2c lead dynamic, given by factors such as the type of product and its purchase frequency. It makes no sense to compare the customer retention rate of a bakery with that of a technology or appliance store.