{"id":39305,"date":"2021-11-30T05:54:46","date_gmt":"2021-11-30T05:54:46","guid":{"rendered":"https:\/\/act.com\/?page_id=39305"},"modified":"2023-01-05T11:45:26","modified_gmt":"2023-01-05T18:45:26","slug":"how-to-calculate-customer-retention","status":"publish","type":"page","link":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/","title":{"rendered":"How to Calculate Customer Retention Rate | Act!"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-page\" data-elementor-id=\"39305\" class=\"elementor elementor-39305\" data-elementor-post-type=\"page\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-7fe1171 topSection elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"7fe1171\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t\t<div class=\"elementor-background-overlay\"><\/div>\n\t\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-814b0a1\" data-id=\"814b0a1\" data-element_type=\"column\" data-settings=\"{&quot;background_background&quot;:&quot;classic&quot;}\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2137c5b elementor-widget elementor-widget-heading\" data-id=\"2137c5b\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-heading-title{padding:0;margin:0;line-height:1}.elementor-widget-heading .elementor-heading-title[class*=elementor-size-]>a{color:inherit;font-size:inherit;line-height:inherit}.elementor-widget-heading .elementor-heading-title.elementor-size-small{font-size:15px}.elementor-widget-heading .elementor-heading-title.elementor-size-medium{font-size:19px}.elementor-widget-heading .elementor-heading-title.elementor-size-large{font-size:29px}.elementor-widget-heading .elementor-heading-title.elementor-size-xl{font-size:39px}.elementor-widget-heading .elementor-heading-title.elementor-size-xxl{font-size:59px}<\/style><h1 class=\"elementor-heading-title elementor-size-default\">How to calculate your customer<br>retention rate<\/h1>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-83eed99 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"83eed99\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-980d841\" data-id=\"980d841\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-63647ef elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"63647ef\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-a2731eb Fixed_SideBar\" data-id=\"a2731eb\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f7756c6 elementor-icon-list--layout-traditional elementor-list-item-link-full_width elementor-widget elementor-widget-icon-list\" data-id=\"f7756c6\" data-element_type=\"widget\" data-settings=\"{&quot;sticky&quot;:&quot;top&quot;,&quot;sticky_on&quot;:[&quot;desktop&quot;],&quot;sticky_offset&quot;:150,&quot;sticky_effects_offset&quot;:0}\" data-widget_type=\"icon-list.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<link rel=\"stylesheet\" href=\"https:\/\/products.act.com\/wp-content\/plugins\/elementor\/assets\/css\/widget-icon-list.min.css\">\t\t<ul class=\"elementor-icon-list-items\">\n\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_01\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">1. What is a customer retention rate?<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_02\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">2. Is customer retention more important than acquisition?<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_03\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">3. Retention rate vs. churn rate<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_04\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">4. Why should you calculate your customer retention rate?<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_05\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">5. Customer retention rate formula<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_06\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">6. What does this mean?<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_07\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">7. 4 Best Practices to Implement<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"#Step_08\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\">8. Know your customer retention rate<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t\t<a href=\"\/en-gb\/learning-center\/\">\n\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\"><strong style=\"color: #0ab4dc;\">More questions?<\/strong><br>     Visit our Learning Center<\/span>\n\t\t\t\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t<li class=\"elementor-icon-list-item\">\n\t\t\t\t\t\t\t\t\t\t<span class=\"elementor-icon-list-text\"><center><hr><br><span style=\"color: #0ab4dc; font-weight: 700; font-size: 16px\">Start Creating More Meaningful Relationships With Act!<\/span><br><span style=\"font-size: 12px;\">Start your 14 day free trial today. No download or credit card required.<\/span><br><br><a href=\"https:\/\/www.act.com\/en-gb\/trial\/act\/\" class=\"listBtn\" style=\"width: max-content;\" id=\"free-trial-sidebar-button\" target=\"_blank\">Start Free Trial<\/a><br><br><\/center><\/span>\n\t\t\t\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t<\/ul>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-1d61589\" data-id=\"1d61589\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-be1ec4a elementor-widget elementor-widget-text-editor\" data-id=\"be1ec4a\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p dir=\"ltr\">Businesses routinely track revenue and profits, but it\u2019s also important to measure your company\u2019s ability to<a href=\"https:\/\/www.act.com\/en-gb\/what-is-customer-retention\/\" target=\"_blank\" rel=\"noopener\">\u00a0retain existing customers<\/a>. Going beyond profits and losses, your customer retention rate helps you see how well you keep customers over months or years. It gives you a measure of how well you prevent customer turnover, also known as churn. Without this information, you may not know that you have a problem until it&#8217;s too late.<\/p><p dir=\"ltr\">While customer growth usually gets the lion&#8217;s share of the focus, retention is a key business driver. This is especially true for software-as-a-service or SaaS companies that operate on a recurring revenue model.<\/p><p dir=\"ltr\">What is the retention rate and how do you calculate it? Here&#8217;s what business owners need to know about customer retention, how to work out customer retention rates, and other best practices.<\/p><h2 id=\"Step_01\" dir=\"ltr\">What is a customer retention rate?<\/h2><p dir=\"ltr\">Customer retention rate (CRR) is a figure that reveals how effective your organisation is at keeping customers happy so they continue doing business with your company. It&#8217;s expressed as the percentage of customers that stay with your company through such actions as repeat purchases, additional purchases, upgrades, or subscription renewals. You can take this measurement for any given period of time and should do it on a routine basis to ensure the continual growth of your company\u2019s customer base.<\/p><p dir=\"ltr\">A company&#8217;s customer (or client) retention rate is an indicator of how often they deliver positive customer experiences,\u2014but it&#8217;s more than that. Top companies encourage repeat business and customer success through customer retention strategies and initiatives such as customer loyalty programs, subscriptions, or seasonal deals.<\/p><h2 id=\"Step_02\" dir=\"ltr\">Is customer retention more important than acquisition?<\/h2><p dir=\"ltr\">Customer retention is crucial for small businesses because the cost of acquiring a customer is much higher than the cost of retaining one.<\/p><p dir=\"ltr\">An old rule of thumb used to be that it cost a business five times more to get a new customer than retain a current customer. However, this estimate was conceived long before the world of internet marketing and advanced technology, so it may be much higher nowadays. Consider the fact that people like familiarity\u2014we all have our favourite restaurants, stores, and such. Repeat customers are reliable, an opportunity for upselling, and can keep businesses running during slow economic times.<\/p><p dir=\"ltr\">With that said, the best protocol is to make sure you&#8217;re giving new customer acquisition and customer retention equal attention.<\/p><h2 id=\"Step_03\" dir=\"ltr\">Retention rate vs. churn rate<\/h2><p dir=\"ltr\">Retention rate and churn rate go hand in hand. Churn rate is the inverse of the customer retention rate. If a business has a 90% retention rate, its churn rate is 10%. It&#8217;s important to track these numbers together to make sure the math is correct. Some businesses rely on the retention rate figure, while others focus on churn rate. Either way, these numbers help small business owners make informed and strategic decisions.<\/p><h2 id=\"Step_04\" dir=\"ltr\">Why should you calculate your customer retention rate?<\/h2><p dir=\"ltr\">Measuring your<a href=\"https:\/\/www.act.com\/en-gb\/customer-acquisition\/\" target=\"_blank\" rel=\"noopener\">\u00a0customer retention<\/a> rate helps you go beyond a customer acquisition focus and evaluate customer satisfaction. It allows you to make sure you aren\u2019t losing customers as fast as\u2014or faster than\u2014you\u2019re adding them. Running a business without repeat customers is like treading water or running in place.<\/p><p dir=\"ltr\">A company\u2019s growth depends on more than sales and marketing performance. Tracking<a href=\"https:\/\/www.act.com\/blog\/gb\/customer-retention-strategies\/\" target=\"_blank\" rel=\"noopener\">\u00a0customer retention<\/a> informs the business of what adjustments are needed to meet sales goals and growth targets. It\u2019s a good predictor of revenue for the upcoming quarter, not to mention an indicator of how well your customer service department is performing, It also reveals when it\u2019s time to add or adjust your<a href=\"https:\/\/www.act.com\/en-gb\/customer-loyalty-programs\/\" target=\"_blank\" rel=\"noopener\">\u00a0loyalty program<\/a>.<\/p><p dir=\"ltr\">Customer retention rate calculations can also create a competitive advantage, especially when you track them over time. Additionally, repeat customers tend to visit more often, provide referrals, and spend more than new customers, according to<a href=\"https:\/\/media.bain.com\/Images\/BB_Prescription_cutting_costs.pdf\" target=\"_blank\" rel=\"noopener\">\u00a0Bain &amp; Company research<\/a>.<\/p><h2 id=\"Step_05\" dir=\"ltr\">Customer retention rate formula<\/h2><p dir=\"ltr\">Here&#8217;s how to measure customer retention and calculate your customer retention relate so you can reap these benefits.<\/p><p dir=\"ltr\">Each time you calculate your retention rate, the first step is to determine a specific period of time such as a month, a year, or a quarter. Once you&#8217;ve decided on the time period, select the start date and end date that apply.<\/p><p dir=\"ltr\">Next, you\u2019ll need to gather the following information:<\/p><ul><li dir=\"ltr\" aria-level=\"1\"><p dir=\"ltr\" role=\"presentation\">The number of retained customers at the start of the time period (S)<\/p><\/li><li dir=\"ltr\" aria-level=\"1\"><p dir=\"ltr\" role=\"presentation\">The number of retained customers at the end of the time period (E)<\/p><\/li><li dir=\"ltr\" aria-level=\"1\"><p dir=\"ltr\" role=\"presentation\">The number of new customers acquired during the time period (N)<\/p><\/li><\/ul><p dir=\"ltr\">Plug these numbers into the following formula:<\/p><p dir=\"ltr\">CRR = ((E-N)\/S) x 100<\/p><p dir=\"ltr\">This formula isn\u2019t at complicated as it may appear. Once you gather all the necessary information, simply subtract the number of new customers from the number of customers retained at the end of the time period. Then take the resulting number and divide it by the number of retained customers you had at the start of the time period. To convert that figure to a percentage, multiply it by 100 and you\u2019ll have your customer retention rate.<\/p><p dir=\"ltr\">Let\u2019s look at an example:<\/p><p dir=\"ltr\">If you start with 2,000 customers (S), end with 2,200 (E), and added 400 new customers (N) during the period your formula looks like this:<\/p><p dir=\"ltr\">((2,200 \u2013 400)\/2,000) x 100 = 90%<\/p><p dir=\"ltr\">This reveals that you kept 90% of your customers and lost 10% through churn.<\/p><h2 id=\"Step_06\" dir=\"ltr\">What does this mean?<\/h2><p dir=\"ltr\">Since replacing lost customers costs more than retaining them, it\u2019s important to dig deeper to understand if this turnover will mean trouble to your particular business. For example, if your new customers are spending more than the ones you lost, this may not have a major impact on your bottom line. However, if you\u2019re retaining customers and they are spending less or downgrading subscriptions to less costly ones, this could mean trouble in the long run.<\/p><p dir=\"ltr\">Benchmarking retention and churn rates depends on the size, revenue, and economic factors around your business. Most estimates say a churn rate between 2.5% and 5% is good, and less than 1.5% is great. Of course, these figures depend on your business model and industry. Speak with local experts in your network to determine a retention rate goal.<\/p><p dir=\"ltr\">Another consideration is your cost of acquiring new customers. If your customer acquisition cost is extremely low, retention may be less of a concern than if it&#8217;s high. Remember to look at revenue to provide a more complete picture.<\/p><h2 id=\"Step_07\" dir=\"ltr\">4 Best Practices to Implement<\/h2><p dir=\"ltr\"><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-70561 size-full\" src=\"https:\/\/www.act.com\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png\" alt=\"\" width=\"1200\" height=\"630\" srcset=\"https:\/\/products.act.com\/wp-content\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png 1200w, https:\/\/products.act.com\/wp-content\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate-300x158.png 300w, https:\/\/products.act.com\/wp-content\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate-1024x538.png 1024w, https:\/\/products.act.com\/wp-content\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate-768x403.png 768w\" sizes=\"(max-width: 1200px) 100vw, 1200px\" \/><\/p><p dir=\"ltr\">Calculating the retention rate involves a simple formula, but several nuances and variables can trip up business owners if they&#8217;re not careful. Here are some mistakes to avoid.<\/p><h3 dir=\"ltr\">Track recurring revenue rate (if relevant)<\/h3><p dir=\"ltr\">Depending on your business model, churning customers might carry different weights. Tracking the recurring revenue rate identifies the percentage of lost revenue, not just a customer count. This will help business owners identify warning signs, even if the customer retention rate remains high.<\/p><h3 dir=\"ltr\">Separate cancellation notices and churn<\/h3><p dir=\"ltr\">Another consideration when using a recurring revenue model is to separate cancellation requests and churn. Churn represents customers who are no longer paying any money, while cancellation requests come from customers who indicated they will be cancelling their subscriptions or membership. This is important because the timeframe between when customers indicate they want to cancel and their last billing date is a period of immense opportunity. You can enter these customers into win-back campaigns, which can lead to revenue-saving successes.<\/p><h3 dir=\"ltr\">Consider customer lifecycles<\/h3><p dir=\"ltr\">Another tactic to get more granular with customer retention rate is to factor in customer churn and how it impacts customer lifecycles, as in how long the customer was a paying subscriber. For instance, if most customers are cancelling within three months, business owners should look at their onboarding structure and make improvements. If customers are cancelling after a longer period\u2014say, two years\u2014business owners can implement annual or quarterly business reviews to ensure long-term customers are getting the attention they need and translating to greater customer lifetime value.<\/p><p dir=\"ltr\">Separate tiers of cancellations (if relevant)<\/p><p dir=\"ltr\">Lastly, you can break down customer retention rates by subscription tier. This shows which types of subscriptions are the most successful, as well as whether previous subscriptions that are now grandfathered to older customers are more or less effective.<\/p><h2 id=\"Step_08\" dir=\"ltr\">Know your customer retention rate<\/h2><p dir=\"ltr\">Customer retention rate is not a standalone indicator of the overall health of your business, but you must track it routinely to ensure you can proactively address issues as they arise. Numbers and spreadsheets can&#8217;t run a business for you, and you can&#8217;t replace customer service and hard work. However, important metrics like the CRR can serve as a guide for decision-making. This eliminates some of the stress and guesswork that comes with owning and growing a business.<\/p><p dir=\"ltr\">Consider this quote from leading author and consultant Chip Bell about customer retention: &#8220;Loyal customers, they don&#8217;t just come back, they don&#8217;t simply recommend you, they insist that their friends do business with you.&#8221;<\/p><p dir=\"ltr\">Calculating your customer retention rate\u2014and creating strategies to improve it and turning average customers into loyal customers\u2014is the first step toward building a network of loyal, revenue-driving customers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c96ac28 elementor-widget elementor-widget-shortcode\" data-id=\"c96ac28\" data-element_type=\"widget\" data-widget_type=\"shortcode.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-shortcode\">\t\t<div data-elementor-type=\"section\" data-elementor-id=\"62983\" class=\"elementor elementor-62983\" data-elementor-post-type=\"elementor_library\">\n\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-45418d4 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"45418d4\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-8182646\" data-id=\"8182646\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-2fac0049 elementor-widget elementor-widget-heading\" data-id=\"2fac0049\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Start Creating More Meaningful Relationships With Act!<\/h3>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-34339b3c elementor-widget elementor-widget-text-editor\" data-id=\"34339b3c\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\tStart your 14 day free trial today. No download or credit card required.\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-62a725b7 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"62a725b7\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.act.com\/en-gb\/trial\/act\/\" id=\"free-trial-speedbump-button\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Start Free Trial<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d8b21f9 elementor-widget elementor-widget-heading\" data-id=\"d8b21f9\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Learn more about Customer Retention:<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f229483 elementor-widget elementor-widget-text-editor\" data-id=\"f229483\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<ul><li><a href=\"https:\/\/www.act.com\/en-gb\/what-is-customer-retention\/\" target=\"_blank\" rel=\"noopener\">What is customer retention and why is it important for your business?<\/a><\/li><li><a href=\"https:\/\/www.act.com\/en-gb\/customer-retention-strategies\/\" target=\"_blank\" rel=\"noopener\">5 examples of simple customer retention strategies<\/a><\/li><\/ul>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6278932 elementor-widget elementor-widget-image\" data-id=\"6278932\" data-element_type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.20.0 - 26-03-2024 *\/\n.elementor-widget-image{text-align:center}.elementor-widget-image a{display:inline-block}.elementor-widget-image a img[src$=\".svg\"]{width:48px}.elementor-widget-image img{vertical-align:middle;display:inline-block}<\/style>\t\t\t\t\t\t\t\t\t\t\t<a href=\"https:\/\/www.act.com\/en-gb\/guides\/marketing-automation-ebook\/\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1024\" height=\"241\" src=\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5.png\" class=\"attachment-large size-large wp-image-26835\" alt=\"Act! CRM download button for marketing automation guide\" srcset=\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5.png 1024w, https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5-300x71.png 300w, https:\/\/products.act.com\/wp-content\/uploads\/2021\/08\/marketing-automation-ebook-bannerd77493e796e1633a9d88ff00001e67f5-768x181.png 768w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/>\t\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t<div class=\"elementor-column elementor-col-33 elementor-inner-column elementor-element elementor-element-1028d02\" data-id=\"1028d02\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-4eb60f8 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"4eb60f8\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-a4e208c\" data-id=\"a4e208c\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-b1b046b elementor-widget elementor-widget-html\" data-id=\"b1b046b\" data-element_type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<script>var _hsq = window._hsq = window._hsq || [];\n_hsq.push(['setContentType', 'knowledge-article']);<\/script>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-8f2bc2b elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"8f2bc2b\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-157be3f\" data-id=\"157be3f\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1725731 elementor-widget elementor-widget-text-editor\" data-id=\"1725731\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align: center;\"><sup>1<\/sup>\u00a0Customer survey conducted in 2017 among Act! customers.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-98be8b7 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"98be8b7\" data-element_type=\"section\" data-settings=\"{&quot;background_background&quot;:&quot;gradient&quot;}\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7397972\" data-id=\"7397972\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-1494c9f elementor-widget elementor-widget-heading\" data-id=\"1494c9f\" data-element_type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Big results. Small investment.<\/h2>\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bf3b507 elementor-widget elementor-widget-text-editor\" data-id=\"bf3b507\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p>Ready to take the first step?<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7fc23b9 elementor-align-center elementor-widget elementor-widget-button\" data-id=\"7fc23b9\" data-element_type=\"widget\" data-widget_type=\"button.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<div class=\"elementor-button-wrapper\">\n\t\t\t<a class=\"elementor-button elementor-button-link elementor-size-sm\" href=\"https:\/\/www.act.com\/en-gb\/trial\/act\/\" target=\"_blank\">\n\t\t\t\t\t\t<span class=\"elementor-button-content-wrapper\">\n\t\t\t\t\t\t<span class=\"elementor-button-text\">Try it free<\/span>\n\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>How to calculate your customerretention rate 1. What is a customer retention rate? 2. Is customer retention more important than acquisition? 3. Retention rate vs. churn rate 4. Why should you calculate your customer retention rate? 5. Customer retention rate formula 6. What does this mean? 7. 4 Best Practices to Implement 8. Know your [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[],"tags":[],"folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v22.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>How to Calculate Customer Retention Rate | Act!<\/title>\n<meta name=\"description\" content=\"Learn how to calculate customer retention rate with this measurement formula from the CRM experts at Act!\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to Calculate Customer Retention Rate | Act!\" \/>\n<meta property=\"og:description\" content=\"Learn how to calculate customer retention rate with this measurement formula from the CRM experts at Act!\" \/>\n<meta property=\"og:url\" content=\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/\" \/>\n<meta property=\"og:site_name\" content=\"Act!\" \/>\n<meta property=\"article:modified_time\" content=\"2023-01-05T18:45:26+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"9 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/\",\"url\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/\",\"name\":\"How to Calculate Customer Retention Rate | Act!\",\"isPartOf\":{\"@id\":\"https:\/\/products.act.com\/en-gb\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png\",\"datePublished\":\"2021-11-30T05:54:46+00:00\",\"dateModified\":\"2023-01-05T18:45:26+00:00\",\"description\":\"Learn how to calculate customer retention rate with this measurement formula from the CRM experts at Act!\",\"breadcrumb\":{\"@id\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#breadcrumb\"},\"inLanguage\":\"en-GB\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#primaryimage\",\"url\":\"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png\",\"contentUrl\":\"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/products.act.com\/en-gb\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"How to Calculate Customer Retention Rate | Act!\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/products.act.com\/en-gb\/#website\",\"url\":\"https:\/\/products.act.com\/en-gb\/\",\"name\":\"Act!\",\"description\":\"CRM &amp; Marketing Automation in One\",\"publisher\":{\"@id\":\"https:\/\/products.act.com\/en-gb\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/products.act.com\/en-gb\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-GB\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/products.act.com\/en-gb\/#organization\",\"name\":\"Act!\",\"url\":\"https:\/\/products.act.com\/en-gb\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-GB\",\"@id\":\"https:\/\/products.act.com\/en-gb\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/07\/logo_fe5000.png\",\"contentUrl\":\"https:\/\/products.act.com\/wp-content\/uploads\/2021\/07\/logo_fe5000.png\",\"width\":120,\"height\":120,\"caption\":\"Act!\"},\"image\":{\"@id\":\"https:\/\/products.act.com\/en-gb\/#\/schema\/logo\/image\/\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"How to Calculate Customer Retention Rate | Act!","description":"Learn how to calculate customer retention rate with this measurement formula from the CRM experts at Act!","robots":{"index":"noindex","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"og_locale":"en_GB","og_type":"article","og_title":"How to Calculate Customer Retention Rate | Act!","og_description":"Learn how to calculate customer retention rate with this measurement formula from the CRM experts at Act!","og_url":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/","og_site_name":"Act!","article_modified_time":"2023-01-05T18:45:26+00:00","og_image":[{"url":"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png"}],"twitter_card":"summary_large_image","twitter_misc":{"Est. reading time":"9 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/","url":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/","name":"How to Calculate Customer Retention Rate | Act!","isPartOf":{"@id":"https:\/\/products.act.com\/en-gb\/#website"},"primaryImageOfPage":{"@id":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#primaryimage"},"image":{"@id":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#primaryimage"},"thumbnailUrl":"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png","datePublished":"2021-11-30T05:54:46+00:00","dateModified":"2023-01-05T18:45:26+00:00","description":"Learn how to calculate customer retention rate with this measurement formula from the CRM experts at Act!","breadcrumb":{"@id":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#breadcrumb"},"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#primaryimage","url":"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png","contentUrl":"https:\/\/dev-inproduct.pantheonsite.io\/uploads\/4-Best-Practices-Calculating-Customer-Retention-Rate.png"},{"@type":"BreadcrumbList","@id":"https:\/\/products.act.com\/en-gb\/how-to-calculate-customer-retention\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/products.act.com\/en-gb\/"},{"@type":"ListItem","position":2,"name":"How to Calculate Customer Retention Rate | Act!"}]},{"@type":"WebSite","@id":"https:\/\/products.act.com\/en-gb\/#website","url":"https:\/\/products.act.com\/en-gb\/","name":"Act!","description":"CRM &amp; Marketing Automation in One","publisher":{"@id":"https:\/\/products.act.com\/en-gb\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/products.act.com\/en-gb\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-GB"},{"@type":"Organization","@id":"https:\/\/products.act.com\/en-gb\/#organization","name":"Act!","url":"https:\/\/products.act.com\/en-gb\/","logo":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/products.act.com\/en-gb\/#\/schema\/logo\/image\/","url":"https:\/\/products.act.com\/wp-content\/uploads\/2021\/07\/logo_fe5000.png","contentUrl":"https:\/\/products.act.com\/wp-content\/uploads\/2021\/07\/logo_fe5000.png","width":120,"height":120,"caption":"Act!"},"image":{"@id":"https:\/\/products.act.com\/en-gb\/#\/schema\/logo\/image\/"}}]}},"_links":{"self":[{"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/pages\/39305"}],"collection":[{"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/comments?post=39305"}],"version-history":[{"count":0,"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/pages\/39305\/revisions"}],"wp:attachment":[{"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/media?parent=39305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/categories?post=39305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/tags?post=39305"},{"taxonomy":"folder","embeddable":true,"href":"https:\/\/products.act.com\/en-gb\/wp-json\/wp\/v2\/folder?post=39305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}