Let’s say you want to understand how Calculating Customer Retention Rate. well your business is doing and how you can benefit from customer retention. Then you can take the time to calculate your customer retention rate. To calculate your company’s customer retention rate, gather the following data:
New Clients
How many new clients have you acquired during this time?
Time Period : Determine the time range, such as one month, quarter, or year. This formula applies to any time period. However, you will get bulgaria phone number data more information if the sample size is larger. If you only get a couple of clients each month, you should use a longer period of time, such as every quarter or once a year, as your time frame.
End Customers : How many customers will you have by the end of the term?
Existing Customers
How many current customers do you have at the beginning of this period?
Once you have the above information, you can use this formula to calculate your customer retention rate:
For example, if your business started 5 software problems all businesses face and how to fix them with 200 customers, you acquired 100 new customers, and ended the quarter with 250 customers. Your retention rate would be 75%.
Once you have calculated
Your company’s customer retention rate, you can compare it to industry standards. With a quick comparison, you can see whether your company’s performance has exceeded the average or whether you can benefit from significant improvements.
Overall, according to HubSpot , the average customer retention rate for most industries is less than 20%. However, the target tax rate for certain phone number taiwan industries is significantly higher. For example, according to Profit Well , the IT services retention rate is 81%, while the insurance industry has a retention rate of only 83% of customers. The average retention rate for professional services companies is 84%, while the retention rate for retail businesses is 63%.