Client Retention Rate Calculator

Formula

The formula to calculate client retention rate is:

\[ \text{CRR} = \left( \frac{\text{CE} - \text{CN}}{\text{CS}} \right) \times 100 \]

Where:

(CRR) is the client retention rate
(CE) is the number of clients at the end of a period
(CN) is the number of new clients acquired during the period
(CS) is the number of clients at the start of the period

What is Client Retention Rate?

Client Retention Rate (CRR) is a key business metric that calculates the percentage of customers a company retains over a certain period of time. It is a critical indicator of a company’s customer satisfaction, loyalty, and overall business performance.

A high client retention rate signifies that a company’s products or services are meeting or exceeding customer expectations, leading to customer loyalty and repeat business. Conversely, a low client retention rate may indicate customer dissatisfaction, prompting businesses to investigate and address potential issues.

Example Calculation

Let's assume the following values:

Number of Clients at the End of the Period (CE) = 150
Number of New Clients Acquired During the Period (CN) = 30
Number of Clients at the Start of the Period (CS) = 200

Using the formula:

\[ \text{CRR} = \left( \frac{150 - 30}{200} \right) \times 100 = \left( \frac{120}{200} \right) \times 100 = 60 \]

The client retention rate is 60%.