What Metrics Should Entrepreneurs Track for Customer Retention?
To effectively manage customer retention, entrepreneurs should track the following metrics:
1. Customer Retention Rate (CRR): This metric measures the percentage of customers who continue to do business with you over a given period. 2. Customer Churn Rate: The percentage of customers who stop doing business with you. A high churn rate indicates potential issues that need to be addressed. 3. Net Promoter Score (NPS): This measures the likelihood that customers would recommend your brand to others. A high NPS is a strong indicator of customer satisfaction and loyalty. 4. Customer Lifetime Value (CLV): This estimates the total revenue a customer is expected to generate during their relationship with your business.