What is a good CRR
Posted: Tue Jan 21, 2025 7:18 am
To calculate it correctly, you need to know the following variables:
CE: number of customers at the end of the reporting period
CN: Number of new customers for the period
CS: number of clients at the start of the measurement period
Now you can apply them using the following formula:
For example, if you had 240 customers at the beginning of a given time period (CS), 28 new customers were added (CN), and at the end of the reporting period there were 230 customers left (CE), then your CRR would be 84.2% [(230-28): 240 x 100]
You need to strive for the highest possible CRR. And although 100% is quite possible, not everyone manages to achieve it.
To find the best CRR for you, compare it to the average in your industry. Here are some retention metrics:
Media: 84%
IT services: 81%
Consumer services: 67%
Retail: 63%
Hospitality: 55%
As you can see, CRR can vary depending on the industry. However, most companies will aim for 85%.
If your CRR is below the industry average, you rich people phone number data to optimize your strategy and find a way to retain more customers. How? We’ll get to that in a bit.
Key Metrics for Retaining Your Customers
Before we look at the best customer retention strategies, let's look at the most important marketing metrics you need to track:
Purchase Frequency (PFR)
PFR shows how many times an existing customer has purchased from you over a given period of time.
Remember that PFR monitoring will also show the level of engagement between customers and the business.
To calculate it, you need to divide the total number of orders made during a period of time by the number of existing customers :
For example, if you have 240 orders and 180 customers, your purchase frequency will be 1.33.
Compared to your CRR, PFR shows the value your customers are receiving. Additionally, you can use this data to identify purchasing habits and use it to improve your advertising campaigns.
Average order value (AOV)
AOV is an important metric that will help you understand how much each customer spends when making a purchase.
CE: number of customers at the end of the reporting period
CN: Number of new customers for the period
CS: number of clients at the start of the measurement period
Now you can apply them using the following formula:
For example, if you had 240 customers at the beginning of a given time period (CS), 28 new customers were added (CN), and at the end of the reporting period there were 230 customers left (CE), then your CRR would be 84.2% [(230-28): 240 x 100]
You need to strive for the highest possible CRR. And although 100% is quite possible, not everyone manages to achieve it.
To find the best CRR for you, compare it to the average in your industry. Here are some retention metrics:
Media: 84%
IT services: 81%
Consumer services: 67%
Retail: 63%
Hospitality: 55%
As you can see, CRR can vary depending on the industry. However, most companies will aim for 85%.
If your CRR is below the industry average, you rich people phone number data to optimize your strategy and find a way to retain more customers. How? We’ll get to that in a bit.
Key Metrics for Retaining Your Customers
Before we look at the best customer retention strategies, let's look at the most important marketing metrics you need to track:
Purchase Frequency (PFR)
PFR shows how many times an existing customer has purchased from you over a given period of time.
Remember that PFR monitoring will also show the level of engagement between customers and the business.
To calculate it, you need to divide the total number of orders made during a period of time by the number of existing customers :
For example, if you have 240 orders and 180 customers, your purchase frequency will be 1.33.
Compared to your CRR, PFR shows the value your customers are receiving. Additionally, you can use this data to identify purchasing habits and use it to improve your advertising campaigns.
Average order value (AOV)
AOV is an important metric that will help you understand how much each customer spends when making a purchase.