Customer retention rate (CRR)
Posted: Tue Feb 04, 2025 10:06 am
Regarding ecommerce, the customer retention rate represents the number of customers who buy from you repeatedly over a given period.
To calculate CRR, you need to have three values:
The number of existing customers at the beginning of the period (S)
The number of total customers at the end of the period (E)
The number of new customers added in the period (N)
When you have all three values, just put them in the formula below:
Customer retention estonia telegram screening rate (CRR) formula
Did You Know: The average CRR for the ecommerce industry is 30%. So try keeping your store’s CRR below 30%.
08. Customer lifetime value (CLV)
CLV represents the total amount of money a shopper is expected to spend on your store’s products or services in their lifetime as your customer.
Knowing CLV is crucial as it helps you decide your CPA and CRR optimization investment.
CLV is calculated based on three values:
CLV = Average order value X No. of times the customer will buy from you each year X The average length of the customer relationship (in years)
So suppose a baseball player buys a bat worth $200 from your store thrice a year.
To calculate CRR, you need to have three values:
The number of existing customers at the beginning of the period (S)
The number of total customers at the end of the period (E)
The number of new customers added in the period (N)
When you have all three values, just put them in the formula below:
Customer retention estonia telegram screening rate (CRR) formula
Did You Know: The average CRR for the ecommerce industry is 30%. So try keeping your store’s CRR below 30%.
08. Customer lifetime value (CLV)
CLV represents the total amount of money a shopper is expected to spend on your store’s products or services in their lifetime as your customer.
Knowing CLV is crucial as it helps you decide your CPA and CRR optimization investment.
CLV is calculated based on three values:
CLV = Average order value X No. of times the customer will buy from you each year X The average length of the customer relationship (in years)
So suppose a baseball player buys a bat worth $200 from your store thrice a year.