How to Measure Customer Retention

Get ready to do a little math. While not my typical lesson, this is very important. It’s about customer retention—which can lead to customer loyalty.
Loyal customers are important to all businesses regardless of industry or size—large, small, B2B or B2C. Most businesses know their numbers, but do they know the right numbers? It’s easy to measure customer satisfaction at different levels. We find out how they liked our experience. We know that if they liked the experience, that is the first step in getting them to come back. The “getting them to come back” number is different than the “were you happy with us?” number. I’d love for customers to rate our business as a five out of five every time, but the number that is almost as important—maybe even more so—is the one that proves to us that the customer came back. That’s your customer retention number.
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