What is CRC (Customer Retention Cost)?
CRC gauges customer retention cost. It is estimated by dividing the overall cost of client retention (customer service, marketing, sales, etc.) by the number of customers kept.CRC helps firms compare the actual costs of retaining customers versus those of obtaining new ones. High CRCs suggest that retaining customers is costly and may signal that customer experience or assistance needs better. However, a low CRC means the corporation is keeping customers and possibly spending less.