What Is Retention?
A retention rate, or customer retention rate is the percentage of customers a company has retained over a certain period of time. Retention rate is an important metric because it directly reflects the profitability of a business. An easy way to calculate this metric is:
Customer retention rate = ((EC-NC)/SC)*100
EC – number of customers at the end of a period
NC – number of new customers during that period
SC – number of customers at the start of that period
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