A low retention rate might indicate poor customer fit or dissatisfaction

[[email protected]]

Customer acquisition cost (CAC)
Conversion rate
New leads
Average purchase value
Number of sale activities
Upsell and cross-sell rates
Sales cycle length
Lead response time
Employee satisfaction
1. Customer lifetime value
Customer lifetime value (CLV) is the total income a company brings in from a typical customer over the entirety of their time as a customer. It includes the value of initial purchases, renewals, upsells, cross-sells, and any other income.

CLV is crucial because it shows how much kuwait mobile number digits revenue a company can expect to earn over the long term and how much each customer is worth to the business. It can also shine a light on customer fit, customer retention efforts, and more.

CLV formula:
CLV = (average transaction size) x (average number of transactions) x (retention period)

2. Retention rate
Customer retention rate measures the likelihood your business will keep customers over a given period.

ith your product or customer support. Tracking the retention rate can help you catch these issues and make changes to retain more customers.

Customer retention rate formula:

Customer retention rate = (Customers at the end of a period) – (new customers gained) / customers at the beginning of a period

3. Churn rate
The churn rate is essentially the flip side of the retention rate and measures the rate at which a business loses customers.

Most of your revenue likely comes from existing customers, and it’s much more cost-effective to keep a current customer than gain a new one. So, while every business has some churn, tracking your retention or churn rate is essential.

Customer churn rate formula: