Customer retention is the ability of a business to retain existing customers over time by fostering loyalty, satisfaction, and consistent value delivery. It measures how well a company maintains long-term customer relationships and retains them for a long time.

Calculate Customer Retention Score 

The customer retention rate measures the percentage of existing customers a company retains over a given period.

Customer Retention Rate (%)= (E−N​) / S ×100

Where:

• E = Number of customers at the end of the period
• N = Number of new customers acquired during the period
• S = Number of customers at the start of the period
  
  

Key Elements of the Customer Retention  Strategy 

•  Retention strategies include personalized communication, refined experience with the product or services, exceptional customer service, loyalty programs, and regular engagement. 
• High retention rates are a signal of strong brand trust and customer satisfaction.

Why It Matters

Retaining existing customers is more cost-effective and efficient than acquiring new ones and contributes to steady revenue growth and improved profitability.

Strong customer retention drives repeated business, strengthens brand advocacy, and supports sustainable success.