Article · 14 min read

What is Customer Retention? Key Metrics and Strategies

Freshworks Free Beginner India

A plain reference for the retention metric set (retention rate, revenue churn, CLTV, NPS) with formulas, from an Indian SaaS company that sells to both SMB and enterprise.

  • Acquiring a new customer can cost up to five times more than keeping an existing one.
  • Customer retention rate = (ending customers minus new customers) divided by starting customers, times 100.
  • Email existing customers every two to three weeks, and treat six months of no purchase as a churn signal.
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The question it answers

  1. What is the difference between customer success and customer support?

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