How is the Customer Retention Rate (CRC) expressed?

The Customer Retention Rate (CRC) is expressed as a percentage because it quantifies the proportion of customers that a business retains over a specific period, relative to the number of customers it had at the beginning of that period. This measure helps to understand how well a business is performing in terms of keeping its customers loyal and satisfied.

For example, if a company begins with 100 customers and retains 90 of them by the end of the year, the retention rate would be calculated as (90 retained customers / 100 initial customers) x 100, resulting in a 90% customer retention rate. This percentage expression provides a clear and easily interpretable figure that businesses can use to assess their customer loyalty and engagement efforts, compare performance over time, or benchmark against industry standards.

While other formats like dollar amounts, fractions, or index scores may be useful in other contexts or metrics, CRC is specifically utilized as a percentage to communicate retention success straightforwardly and effectively.