Understanding your client retention rate is crucial for business growth. This metric tells you how effectively you are keeping your existing customers over a specific period. A high retention rate indicates customer satisfaction and loyalty, which are generally more cost-effective than acquiring new customers.
The formula for client retention rate is:
Client Retention Rate = [ (Number of Customers at End of Period – Number of New Customers Acquired During Period) / Number of Customers at Start of Period ] * 100
Use the calculator below to easily determine your retention rate.
function calculateRetentionRate() {
var customersStart = parseFloat(document.getElementById("customers_start").value);
var customersEnd = parseFloat(document.getElementById("customers_end").value);
var newCustomers = parseFloat(document.getElementById("new_customers").value);
var retentionRateElement = document.getElementById("result");
if (isNaN(customersStart) || isNaN(customersEnd) || isNaN(newCustomers)) {
retentionRateElement.innerHTML = "Please enter valid numbers for all fields.";
return;
}
if (customersStart <= 0) {
retentionRateElement.innerHTML = "Number of customers at the start of the period must be greater than zero.";
return;
}
var retainedCustomers = customersEnd – newCustomers;
var retentionRate = (retainedCustomers / customersStart) * 100;
if (isNaN(retentionRate)) {
retentionRateElement.innerHTML = "Calculation resulted in an invalid number. Please check your inputs.";
} else {
retentionRateElement.innerHTML = "Client Retention Rate: " + retentionRate.toFixed(2) + "%";
}
}