customer retention

How is Customer Retention Measured?

Customer retention can be measured using various metrics, such as the retention rate, churn rate, and customer lifetime value (CLV). The retention rate is calculated by dividing the number of customers at the end of a period by the number of customers at the start of that period. The churn rate is the percentage of customers who stop doing business with a company during a given period, while CLV represents the total revenue a business can expect from a single customer over their lifetime.

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