Customer Retention Rate allows you to determine how many customers continue to use a product over a certain period of time.
The formula for customer retention rate is: ((Number of users at the end of the period – Number of new users during the period) / Number of customers at the beginning of the period) * 100%.
CRR customer retention rate formula
The better your onboarding works, the higher your customer retention rate.
Customer Lifetime Value (LTV)
Lifetime Value (LTV) is the total profit a business receives from interacting with one customer throughout the entire time that customer uses the product. This metric allows you to assess how profitable it is for a business to attract, engage, and retain one customer.
Strong onboarding increases customer lifetime value.
Read also: What is KPI and how to calculate performance indicators
Net Promoter Score (NPS)
The customer loyalty index shows how loyal a customer is to why our mint database service is perfect for marketers a product or company: whether he or she is willing to buy it again and recommend it to others.
To determine your customer loyalty score, conduct a customer survey.
Ask them: “On a scale of 0 to 10, how likely are you to recommend this company/product to your friends and acquaintances?”
Analyze the answers:
those who gave 9-10 points are your promoters;
those who gave 7-8 points have a neutral attitude towards the company/product (passives);
Those who gave 0-6 points are your critics (detractors).
Now calculate in percentage how many of those surveyed were your supporters and how many were critics.
The formula for the consumer loyalty index is: percentage of supporters – percentage of critics.