Retention rate calculator
Measure your customer retention rate and compare yourself to industry benchmarks to drive your growth.
Enter your data to calculate retention.
Number of active customers at the start of the period.
Total number of customers at the end of the period.
Number of new customers acquired during the period.
Enter your data and click Calculate to see your results.
Understanding customer retention
Retention formula
Retention = ((End customers - New customers) / Start customers) * 100. It measures only existing customers retained, excluding acquisition.
Why retention is crucial
Acquiring a new customer costs 5 to 7 times more than retaining one. A 5% increase in retention can boost profits by 25% to 95%.
Retention vs loyalty
Retention measures if a customer stays active. Loyalty goes further: it measures emotional engagement and repeat purchase rate. Both are complementary.
Improvement levers
Loyalty programs, post-purchase emails, educational content, exceptional customer service and consistent product quality are the foundations of strong retention.
Frequently asked questions
How do you calculate retention rate?+
Retention = ((Customers at end of period - New customers acquired) / Customers at start of period) * 100. This measures existing customers actually retained.
What is the difference with repeat purchase rate?+
Retention measures if a customer stays active, repeat purchase rate measures if they buy again. A customer can be retained without having bought recently.
What is a good retention rate in e-commerce?+
Between 60% and 80% annually depending on the sector. Fashion has lower rates (60-75%), beauty and consumables have higher rates (70-85%).
How do you improve retention quickly?+
Start with post-purchase emails, automated re-engagement campaigns and a simple loyalty program. These three levers deliver results in 30 to 60 days.
Should retention be measured monthly or annually?+
Both. Monthly tracking helps spot trends quickly; annual tracking gives a strategic view aligned with LTV and cohorts.
How does Fullmetrix track retention?+
Fullmetrix automatically calculates your retention by cohort, acquisition source and RFM segment, with heatmap visualizations to identify leakage points.
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