Enter the number of clients at the end of a period and the number of new clients acquired during the period into the calculator, then divide the result by the number of clients at the start of the period and multiply the quotient by 100 to determine the client retention rate; this calculator can also evaluate any of the variables given the others are known.
Client Retention Rate Formula
The following formula is used to calculate the client retention rate:
CRR = ((CE - CN) / CS) * 100
Variables:
- 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
To calculate the client retention rate, subtract the number of new clients acquired during the period from the number of clients at the end of the period. Divide the result by the number of clients at the start of the period. Multiply the quotient by 100 to get the client retention rate.
What is a 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. The formula to calculate CRR is (E-N)/S * 100, where E is the number of customers at the end of a period, N is the number of new customers acquired during that period, and S is the number of customers at the start of the period. 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.
How to Calculate Client Retention Rate?
The following steps outline how to calculate the Client Retention Rate.
- First, determine the number of clients at the beginning of a specific period.
- Next, determine the number of clients at the end of the same period.
- Next, subtract the number of new clients acquired during the period from the number of clients at the end of the period.
- Finally, divide the result by the number of clients at the beginning of the period and multiply by 100 to get the Client Retention Rate.
- After inserting the variables and calculating the result, check your answer with the calculator above.
Example Problem:
Use the following variables as an example problem to test your knowledge.
Number of clients at the beginning of the period = 500
Number of clients at the end of the period = 450
Number of new clients acquired during the period = 50
