Customer Retention Rate
The percentage of customers who continue to buy from you over a given period.
Why it matters
Retaining existing customers is 5-25x cheaper than acquiring new ones. High retention drives predictable revenue, increases lifetime value, and reduces dependence on constant acquisition.
Formula
Subtract new customers acquired during the period from the end count, divide by the number of customers at the start, then multiply by 100.
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What's a good CRR?
SaaS: 90-95% annual. E-commerce: 20-40% annual. Subscription boxes: 50-70% annual.
Related metrics
Churn Rate
SaaSThe percentage of customers or revenue lost over a given period, typically measured monthly.
CLV
SaaSThe total revenue a business can expect from a single customer account over the entire duration of their relationship.
AOV
E-commerceThe average amount spent each time a customer places an order on your website or app.