Customer Retention Rate (CRR)
Percentage of existing customers who stay.
CRR = ((Customers at end − New customers) / Customers at start) × 100%
What it measures
Percentage of existing customers who remain active over a period. The key is excluding new customers: you're measuring whether people who were already customers stayed.
Benchmarks
- Subscription businesses: Target 90%+ monthly retention
- Enterprise SaaS: Target 95%+ monthly retention
What to watch
- Rising: Your existing customers are stickier. Even small retention improvements compound dramatically over time.
- Falling: Something is driving existing customers away. Segment by cohort, tenure, and usage patterns to find who's leaving and when. Early-tenure churn points to onboarding issues; late-tenure churn suggests value erosion.
In practice
A fitness app saw CRR drop from 85% to 78% after adding new workout types. The new content overwhelmed the home screen, and existing users couldn't find their saved workouts. Restoring a "My Workouts" quick-access tab recovered retention to 87%.
Related: Churn Rate — the inverse of retention.; N-day Retention — early warning signals.