The formula for calculating the customer retention rate is very simple. We must subtract the final number of customers in the time period from the number of new customers, divide it by the initial customers and multiply it by 100 .
By calculating the customer retention rate, we will be canada whatsapp mobile phone number list able to have a clearer view of how well our strategies are working. And we will know how many of our new customers become loyal customers.
The calculation of the customer churn rate is another metric that we should monitor frequently. This specific rate tells us how many customers abandon the Sales Process before the purchase is consolidated . Its formula translates into:
To correctly calculate both rates, it is important to remember that all figures must be taken in relation to the time period we select.
The frequency with which we should perform these calculations will depend on the characteristics and needs of each company, as well as on the results we obtain from them.
Thus, if our customer churn rate is very high and we are implementing measures to improve it, we will have to monitor the calculation more frequently.
It is also important to mention that the results of these calculations should not scare you. If your retention rate is low or your loss rate is very high, this does not mean that your company is in crisis.
Each company should be guided by the parameters and metrics that provide the best results for its particular case, and take poor results as an indicator of the work approach they should take.
Practical Tips to Retain Clients and Not Die Trying
The key to good Customer Management is customer retention and loyalty . But achieving this may not be so easy.
The key will always be planning. Having a good guide of the actions we must implement will be of great help to achieve the best results.
This is a path in which various areas of the company, such as marketing and sales, must contribute. This will provide us with objective information on how to further boost the status of each of your clients.
The truth is that we must remain focused on applying the best strategies to achieve a high retention rate. And if you are not sure how to do this, here are some tips that may help you.
Tip #1. Determine the type of retention you want to achieve
There are many ways you can design your retention strategy, and this will depend on the objectives you want to achieve in your company.
