HR Glossary / Customer Retention

Customer retention, or client retention, refers to the capacity of an organization to turn customers into recurring or long-term clients in order to foster repeat business.

How Do You Calculate the Customer Retention Rate?

The customer retention rate is the percentage of customers that remain loyal to an organization over a certain period of time.

The customer retention rate can be calculated with the following formula:

(Number of customers at the end of the period - Number of customers at the beginning of the period) ÷ Number of new customers over the period x 100

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