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Garima GoelTop Contributor
Content writer and social intern at startupTalky
Asked a question 3 years ago

What do you understand by client retention rate

Where am I?

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Client maintenance alludes to the exercises and moves organizations and associations make to lessen the quantity of client rebellions. The objective of client maintenance programs is to help organizations hold whatever number clients as could reasonably be expected, regularly through client devotion and brand dedication activities.

Customer retention also helps in valuation  and enhancing  the  revenue.

 It also helps to inbuild long term relationships with your customers. You aren't just another website or store. Also customers trust them with their money because you give them value in exchange.

Client retention rate

Customer retention describes the actions and strategies used to prevent customers from taking their money elsewhere. When a customer defects, it’s known as churn. Customer retention efforts, when done successfully, will prevent churn and encourage repeat customers.

How it's calculated

When it comes to measuring customer retention, you need to know two things: How much money am I retaining?  and How many logos am I retaining? Net Renewal Rate (NRR) and Gross Renewal Rate (GRR) show retention in terms of revenue retained throughout a period of time, while Customer Retention Rate or Logo Retention Rate show retention in terms of number of customers. Measuring both revenue and logo retention will give you the most balanced view of your business health. Our Customer Success Metrics Calculator makes it easy to calculate these metrics, so you have no excuse to leave any out!


Customer Retention Rate measures customer retention in terms of customers lost, not revenue lost. It’s often helpful to view retention in terms of logos because just relying on the revenue-focused statistics can cause you to miss weaknesses in your retention strategy.