The customer who buys from you Once the variables more than once can become a loyal customer. Having this type of consumer is the dream of any entrepreneur, but remember that there is no way to retain a customer if you don’t retain them.
Do you ne. more reasons to develop or refine your customer retention strategy? If you are already convinc. and would like to know if your retention strategy is effective, continue reading and you will find out.
How to measure the effectiveness
Of your customer retention strategy: calculating your customer retention rate
The formula for calculating the customer retention rate is known as CRR, from the English Customer Retention Rate . The first requirement to calculate it is to define the time interval that will be reflect. in the retention rate.
The definition of the time dataset interval is the responsibility of the organization. It depends on factors such as the sales cycle of the brand’s main products, as well as the frequency of the balance sheets that your company carries out.
The most frequently us. time intervals for measuring customer retention rates include quarters, four-month periods, and semesters.
An annual evaluation of this retention rate is also very common. Once the variables
In this case, the formula will be explain. taking the annual period as a reference. The variables that compose it are:
S : Number of customers reasons for ending up in the spam folder that the brand had at the beginning of the period (1/01);
E : The clients that the company has at the end of the interval (31/12);
N : Number of new customers acquir. by the brand between the beginning and the end of the interval (in this case from 1/01 to 31/12).
CRR = [(E – N)/S]x100
The operation consists of subtracting malaysia numbers list the number of new customers from the total number of final customers. The result is divid. by the number of initial customers and then multipli. by 100. The final result is the customer retention rate at the stage.
Let’s see an example below: