Subtract that last number from your newly acquired number, then divide that solution by the number of customers you originally had.
Retention rate formula
Customer retention rate = number of customers at the end of the period - number of new customers number of customers at the beginning of the period
2. Customer churn
Measure : The rate at which customers stop doing business with you.
Customer Retention Metrics: Customer Churn
Perhaps the most straightforward customer indonesia mobile database retention metric, your company's churn rate is the rate at which customers stop doing business with you. Whether a customer has ended or chosen not to renew their subscription, a churned customer is one that your business does not retain.
That being said, churn in your customer base is natural to a certain extent. For example, a customer may have gone through a major change. Maybe their business was acquired, or they went bankrupt. Maybe they no longer need your product or service.
But if your annual churn rate is greater than 5-7%, it’s time to evaluate customer happiness — and figure out why there might be a problem. High churn rates often indicate that your product or service isn’t meeting your customers’ expectations or goals.