What is retention rate?

Retention rate is the percentage of customers who continue to use your product or service over a specific period. It measures customer loyalty and is calculated as: (Customers at End - New Customers) / Customers at Start × 100.

How do you calculate retention rate?

Retention Rate = ((Customers at End of Period - New Customers Acquired) / Customers at Start of Period) × 100. For example, if you started with 100 customers, gained 20 new ones, and ended with 110, your retention rate is 90%.

What is a good retention rate?

A good retention rate varies by industry. For SaaS, 90%+ monthly retention is excellent. For ecommerce, 20-40% annual retention is typical. For D2C brands, 30-50% repeat purchase rate within 6 months is considered strong.

How can I improve retention rate?

Improve retention by enhancing product quality, providing excellent customer support, personalizing experiences, implementing loyalty programs, engaging customers regularly, and addressing pain points quickly.

Let's Connect ➡️

← Back to Tools

Retention Rate Calculator

Calculate your Customer Retention Rate (CRR) to measure how well you keep customers over a specific period. A high CRR indicates product-market fit and sustainable growth.

Calculate Your Retention

Enter your customer counts for the period to see your retention performance.