Customer retention rate
Key performance question this indicator helps to answer
To what extent are we keeping the customers we have acquired?
Why is this indicator important?
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 made a decision to buy from you it is generally easier to re-sell, cross-sell and up-sell to them.
This is why most businesses ...