Customer Retention Rate: Definition

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The customer retention rate or CRR is the percentage that defines a company's ability to retain users for a given period of time.

A high CRR demonstrates high loyalty and a low churn rate. Through this metric, it is possible to evaluate the quality and effectiveness of the loyalty processes carried out to keep customers satisfied.

Why is Customer Retention Rate so important?
Any growing company can improve its performance by working on the basis of the CRR. This percentage not only measures the effectiveness in acquiring new clients, but also the degree of loyalty they have with the company.

A satisfied customer will return, spend more, buy more frequently and recommend the product or service to their family members. It is estimated that with a 5% increase in CRR it is possible to increase a company's revenue by 25% to 95%.

It is proven that retaining customers significantly improves return on investment.

Some of the reasons why customer retention should be peru whatsapp number database emphasized for business growth are:

Accessibility. Acquiring a new customer costs between 5 and 25 times more than retaining an existing one.
ROI. A 5% increase in CRR can result in a revenue increase of 25% to 95%.
Loyalty. Loyal customers often spend more than new customers: they already know the product or service and return to buy it many more times.
Referrals. Satisfied customers are the best promoters of a company: they will recommend the product to their friends and family.
Customer retention is key to increasing a business's revenue. Loyal customers require less investment than new ones, who need to be attracted, educated and converted.