How important is the customer retention rate

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to retain its customers over time. In B2B , it represents the percentage of contracts that remain active during a specific period , compared to the total number of customers at the beginning. It not only reflects the quality of the product or service offered, but also the overall customer experience , including customer service, after-sales support and the company's ability to anticipate and meet evolving customer needs. A high retention rate indicates customer satisfaction, loyalty and the effectiveness of loyalty strategies. Maintaining this indicator.


healthy is essential for the company's sustainable growth , as Phone Number List consumers tend to spend more, recommend the brand and contribute to long-term success. Maintaining these customers is more profitable than finding new ones. Furthermore, constantly monitoring and improving this metric helps companies strengthen their position in the market. Webinar: Techniques and Metrics for Customer Retention - Ploomes and Vindi How to calculate customer retention rate? Calculating your retention rate is simple. Just follow the step-by-step instructions below: 1- Choose the time period Decide which period you want to.




analyze. Generally, this can be monthly, quarterly, or annually depending on your company's business cycle. 2- Identify the number of customers at the beginning of the period Start by counting how many customers you had at the beginning of the chosen period. Let's use an example: let's say at the beginning of the year, you had 500 customers . 3- Identify how many customers were retained At the end of the period, count how many of those initial customers are still doing business with you. Let's say that at the end of the year, you still have 450 of those 500 customers. 4- Calculate the retention rate Use the formula: Retention rate = retained customers/initial customers x 100 In the example described in the previous steps, the account would look like this:.