GITNUX MARKETDATA REPORT 2023
Must-Know Customer Retention Metrics
Highlights: The Most Important Customer Retention Metrics
- 1. Customer Retention Rate (CRR)
- 2. Churn Rate
- 3. Repeat Purchase Rate (RPR)
- 4. Net Promoter Score (NPS)
- 5. Customer Lifetime Value (CLV)
- 6. Average Revenue Per User (ARPU)
- 7. Time to First Purchase (TTFP)
- 8. Time Between Purchases (TBP)
- 9. Customer Engagement Metrics
- 10. Redemption Rate
- 11. Customer Satisfaction (CSAT)
- 12. Renewal Rate
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Customer Retention Metrics: Our Guide
Embarking on a successful business journey involves more than just attracting new customers—it demands retaining them over time. But how exactly do you gauge your success at customer retention? In today’s blog post, we will delve into the must-know customer retention metrics that can help you monitor your progress, strategize more effectively and ultimately foster customer loyalty.
Customer Retention Rate
Percentage of continuing customers over a period, calculated by dividing end-of-period customers by start-of-period customers, multiplied by 100.
Churn Rate
Churn rate: percentage of customers stopping product use in a period, calculated as lost customers divided by initial customers, times 100.
Repeat Purchase Rate
RPR: Percentage of repeat customers indicates satisfaction, loyalty, and retention success.
Net Promoter Score
NPS: Measures customer loyalty on a -100 to 100 scale. Higher scores mean greater loyalty and satisfaction.
Customer Lifetime Value
CLV: Estimates total customer lifetime revenue, emphasizing the value of customer retention and relationship investment.
Average Revenue Per User
ARPU represents the average revenue generated from a single customer over a specific period. It helps to monitor customer value and the effectiveness of retention strategies.
Time To First Purchase
This metric measures the time for a new customer’s first purchase after engagement. Low TTFP indicates a strong value proposition and effective acquisition.
Time Between Purchases
TBP measures the average time between customer purchases, which can provide insights into customer purchase behavior and the overall effectiveness of retention efforts.
Customer Engagement Metrics
These metrics gauge customer brand engagement across channels (website, social media, apps), aiding marketing effectiveness and retention improvement.
Redemption Rate
Percentage of redeemed coupons or offers. Higher rates indicate active customer engagement and promotional success.
Customer Satisfaction
CSAT measures customer satisfaction levels through surveys, feedback, or reviews. High customer satisfaction is often correlated with improved customer retention and loyalty.
Renewal Rate
For subscription-based businesses, renewal rate is the % of customers renewing subscriptions. Higher rates = satisfaction, product value, and retention success.
Frequently Asked Questions
What are customer retention metrics?
What are some key customer retention metrics?
How can businesses calculate the customer churn rate?
Why is customer lifetime value (CLV) significant in customer retention?
How can businesses improve their net promoter score (NPS)?
How we write these articles
We have not conducted any studies ourselves. Our article provides a summary of all the statistics and studies available at the time of writing. We are solely presenting a summary, not expressing our own opinion. We have collected all statistics within our internal database. In some cases, we use Artificial Intelligence for formulating the statistics. The articles are updated regularly. See our Editorial Guidelines.
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