A repository of acronyms, jargon, and useful definitions perfect for eCommerce founders & marketers like yourself.
Customer retention is the ability of the business to retain its existing customers over a certain period of time. A higher customer retention rate is indicative of the fact that the business has managed to build a sustainable relationship with its customers and these customers will continue to come back for doing business and might even refer their close ones to do the same.
We use customer retention rate as the metric to measure the number of customers who remain with the business at the end of a given period.
Formula to calculate customer retention rate
Customer retention= ((CE-CN)/CS)x100
CS= Number of customers at the start of the measured period
CE= Number of customers at the start of the measured period
CN= number of customers acquired during the period
Ways to improve customer retention rate: