September 2014
Beginner
224 pages
2h 55m
English
Content preview from 25 Need-To-Know Key Performance Indicators
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Chapter 3
Customer retention rate
- Why: To better understand customer loyalty
- What: To measure the extent to which customers are satisfied and loyal
- When: When repeat customers and positive recommendations matter
- The question this indicator helps you to answer: to what extent are we keeping the customers we have acquired?
Why does this KPI matter?
In order to keep making money, companies need customers who buy their products and services. Keeping the customers we already have is usually better and cheaper than trying to find and win new ones. First, attracting and converting leads to customers is expensive. It is generally cheaper to maintain an existing customer relationship than to create a new one from scratch. Second, once customers have ...
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