Customer Retention Rate
Posted: Sun Jan 19, 2025 10:40 am
Customer Retention Rate (CRR) shows the percentage of customers who make a repeat purchase. This metric helps measure customer satisfaction and quantify the success of customer retention strategies.
Retaining customers is cheaper than acquiring new ones, and repeat customers tend to spend more and have a higher customer lifetime value.
How to calculate CRR, customer retention rate:
CRR = ((Количество клиентов на конец периода - paraguay telegram database Количество клиентов, которые пришли за весь период) / Количество клиентов на начало периода) * 100%
"Returning customers spend about twice as much on a purchase as new customers. What's more, they become brand advocates for us - loyal customers who are willing to recommend our product to their friends and colleagues," Morrell notes.
Keep in mind that this KPI is more relevant to certain industries. Fashion brands are likely to have more repeat customers than appliance brands – consumers tend to buy more clothing than appliances.
Pro Tip: Track customer churn along with your return customer rate. Together, these ecommerce KPIs will help you see how often customers return to place additional orders.
6. Cost of customer acquisition
Customer acquisition cost (CAC) shows how much you spend to attract a new customer. This figure includes marketing costs, sales costs, overhead costs, and salaries for the marketing and sales departments.
How to calculate the CAC metric – customer acquisition cost:
Retaining customers is cheaper than acquiring new ones, and repeat customers tend to spend more and have a higher customer lifetime value.
How to calculate CRR, customer retention rate:
CRR = ((Количество клиентов на конец периода - paraguay telegram database Количество клиентов, которые пришли за весь период) / Количество клиентов на начало периода) * 100%
"Returning customers spend about twice as much on a purchase as new customers. What's more, they become brand advocates for us - loyal customers who are willing to recommend our product to their friends and colleagues," Morrell notes.
Keep in mind that this KPI is more relevant to certain industries. Fashion brands are likely to have more repeat customers than appliance brands – consumers tend to buy more clothing than appliances.
Pro Tip: Track customer churn along with your return customer rate. Together, these ecommerce KPIs will help you see how often customers return to place additional orders.
6. Cost of customer acquisition
Customer acquisition cost (CAC) shows how much you spend to attract a new customer. This figure includes marketing costs, sales costs, overhead costs, and salaries for the marketing and sales departments.
How to calculate the CAC metric – customer acquisition cost: