| RR |
| Customer Retention Rate |
Retention rate is a financial metric that is used to measure the percentage of customers or users who continue to use a product or service over a specific period of time. |
| A high retention rate is generally considered a good indication that a product or service is meeting the needs of its users and that the business has a strong customer base. On the other hand, a low retention rate may indicate that a product or service is not meeting the needs of its users or that the business is losing customers. |
How to Calculate: |
It is calculated by dividing the Number of Customers or Users who Remain Active (AC)during a given period by the Total Number of Customers (TC) or users at the beginning of that period, and then expressing the result as a percentage. |
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| For example, if a business has 100 customers at the beginning of a month and 80 of those customers remain active at the end of the month, the retention rate for that month would be 80% (80 / 100 * 100). Retention rate is often used to measure the effectiveness of a product or service, as well as the overall satisfaction and loyalty of a business's customers. |