Customer Retention Rate Calculator
Find out what percentage of your customers are staying with you over time.
Calculated Retention
AverageCustomer Retention Rate
0.0%
Churn Rate
0.0%
Benchmark Data:
- Top Performing Stores:> 35%
- Average Store:20-30%
- Needs Improvement:< 20%
What is Customer Retention Rate?
Customer Retention Rate (CRR) measures the percentage of customers a company has retained over a given time period. It directly reflects your ability to keep customers engaged and purchasing.
How to Calculate Retention Rate
The standard formula is:
Formula
- E: Number of customers at the end of the period.
- N: Number of new customers acquired during the period.
- S: Number of customers at the start of the period.
What is a "Good" Retention Rate?
For eCommerce, average retention rates hover around 20-30%. Top-performing brands (especially in subscriptions, beauty, or pets) often see retention rates upwards of 35-50%.
If your rate is below 20%, you may be suffering from a "leaky bucket"—spending too much on acquisition only to lose customers after one purchase.
Why Retention Matters
A mere 5% increase in customer retention can increase company profitability by 25-95%. It is significantly cheaper to retain an existing customer than to acquire a new one.
Ready to increase customer lifetime value?
Join 100+ Shopify stores using Mage to turn one-time buyers into loyal repeat customers.
"Great app! User friendly and straightforward. The customer service team has been great and so helpful with some minor tweaks I wanted to make and customize."
