Retention Rate


Retention rate is a calculation of how many customers you keep at the end of a period versus how many you already had plus the number you acquired during that period.

Retention Rate (%) = (Number of Customers at End of Period − Number of Customers Acquired During Period) / Total Number of Customers at Start of Period

Let’s plug in some real numbers here as well:

  • Number of customer at the start of the period: 1,000
  • Number of customers acquired during the period: 250
  • Number of customers at end of period: 1,100

Retention Rate = (1,110 − 250) / 1,000, or 85%.




Book: The House of the Customer (2023) by Greg Kihlström