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How to calculate Customer retention rate

The Customer retention rate formula, with plain worked examples you can check yourself.

Customer retention rate = (E − N) ÷ S × 100

The result is a percentage (%).

Worked examples

E = 470 · N = 20 · S = 600Customer retention rate = 75%
E = 700 · N = 60 · S = 800Customer retention rate = 80%
E = 585 · N = 60 · S = 700Customer retention rate = 75%

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Multiply by 100 to show the answer as a percentage.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Brand & Customers.

Related terms

Customer retentionBrand equityMarket shareChurnBrand loyaltyBrand awareness

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