SaaS Customer Retention Rate (CRR) Calculator

Denken Sie an Customer Retention Rate (CRR) as a bucket with holes; it shows the customers who stay and make repeat purchases, highlighting how well you are keeping those customers.

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    Strategic Value of CRR

    A high CRR indicates that a company is well-rounded and positioned for growth.

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    Operational Impact of CRR

    Focusing on increasing CRR allows a company to concentrate its resources on existing customers, reducing costs and easing the burden on marketing and sales teams.

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    Growth Opportunities from CRR

    A high CRR is likely to lead to company growth and an increase in revenue.

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SaaS Customer Retention Rate (CRR)

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Customer Retention Rate (CRR) measures the percentage of customers that a company retains over a given period. A higher percentage indicates better customer retention.

How to Calculate SaaS Customer Retention Rate (CRR)

Discover your SaaS Customer Retention Rate (CRR) rate by following these steps: 

  1. Determine the Number of Customers at the Start of the Period. This is the total number of paying customers you had at the very beginning of the time period you’re measuring. For example, if you’re calculating monthly retention, this is the number of customers you had on the first day of the month.
  2. Calculate the Number of Customers at the End of the Period. This is the total number of paying customers you have at the end of the period you are measuring. If calculating monthly retention, this is the total number of paying customers at the end of the month.
  3. Find the Number of New Customers Acquired During the Period. Count how many new paying customers were added during the time period, not including those who may have left.
  4. Calculate the Number of Customers Retained by subtracting the number of new customers from the number of customers at the end of the period. For example, if you ended the month with 150 customers and had 20 new customers that month, then the number of retained customers is 130.
  5. Calculate the Retention Ratio by dividing the number of customers retained by the number of customers at the start of the period. In our example, if you started the month with 120 customers, the retention ratio is 130/120 = 1.0833
  6. Multiply the retention ratio by 100 to get the Customer Retention Rate (CRR) as a percentage. In our example, the CRR is 1.0833 * 100 = 108.33%. For a typical SaaS business, this number should be near or greater than 90%. A business with a retention rate of greater than 100% indicates the business added more customers than it lost in that period.

 

SaaS Customer Retention Rate (CRR) = [(Number of Customers at End of Period – Number of New Customers Acquired During Period) / Number of Customers at Start of Period] * 100

Understanding SaaS Customer Retention Rate (CRR)

Ioana Grigorescu

21. Januar 2025

What is Customer Retention Rate?

die Customer Retention Rate (CRR) gauges how successfully a business retains clients over a specific time frame, especially in the SaaS industry. This measure is essential since it shows how satisfied customers are and how well the company is doing overall.

CRR is calculated by dividing your total number of customers at the conclusion of a given period by your initial customer base, adjusted for any new clients you may have added during that time. A low CRR may point to underlying problems that need to be fixed, whereas a high CRR shows that customers are satisfied with the service and suggests a successful business strategy.

  • Reduce dependency on new acquisitions and maintain current clientele to stabilize revenue streams.

  • Use customer happiness and loyalty data to inform strategic choices.

  • Assess the effectiveness of customer activities to gauge engagement success.

Practical Examples of SaaS Customer Retention Rate (CRR)

  • Beispiel 1: A SaaS company starts a quarter with 500 customers and loses 20 of them by the end of the quarter. The CRR is calculated as ((500-20)/500)*100 = 96%, which indicates a strong customer retention rate.
  • Beispiel 2: Another SaaS business starts the year with 1,200 customers, gains 300 new customers, and loses 150. The CRR is calculated using only the starting customers: ((1200 – 150) / 1200) * 100 = 87.5%. This is their retention rate for the year.
  • Beispiel 3: A SaaS platform has 2,000 customers and experiences 50 churn in one month. Their CRR is: ((2000-50)/2000)*100 = 97.5%, which shows a high customer retention rate for that month.
Zeitraum Ausgangskunden Neue Kunden Lost Customers Endkunden CRR Change in CRR
Monat 1 500 50 20 530 96.00% –
Monat 2 530 60 15 575 97.17% +1.17%
Monat 3 575 70 25 620 96.09% -1.08%

CRR = (620 – 70) / 575 * 100 = 96.09%

Different Ways to Calculate SaaS Customer Retention Rate

  • Gross Customer Retention Rate: Includes growth revenue from current clients who grow their firm, as well as both active and inactive customers. Useful for a more comprehensive perspective of client stability.
  • Net Customer Retention Rate: Solely takes into account the subscription income earned by active clients within the measured time frame without considering revenue from expansion. Beneficial for evaluating successful client subscription upkeep.
  • Logo Retention Rate: Concentrates on the number of clients who stick around, irrespective of their expenditure. Ideal for businesses that consider the number of customers to be a crucial success factor.
  • Customer Value Retention Rate: Evaluates the worth of clients over time, prioritizing those who generate the majority of money. Vital for focusing on high-value client retention tactics.

How to Improve Your SaaS Customer Retention Rate

  • Recognize why Customers Leave: Use exit interviews and surveys to examine the reasons behind customers’ cancellations of subscriptions. Make targeted enhancements to your product or service to address these problems.
  • Boost Onboarding: By providing lessons and individualized help, you can ensure new users rapidly understand the value of your product and achieve early success.
  • Provide Excellent Service: To keep people satisfied and well-supported, provide prompt, amiable service through various channels (chat, email) and an extensive frequently asked questions section.
  • Engage Proactively: Show people you care about their success by providing assistance, updates, and advice to keep them motivated to stick around.
  • Customize the Experience: By using data to provide recommendations and information that are specific to each user, you may increase the value of your products.
  • Request Feedback Frequently: Utilize feedback forms and surveys to get user thoughts. Respond to them to demonstrate that their opinions are valued and to increase user loyalty.
  • Provide Rewards for Loyalty: To ensure loyalty, offer long-term consumers discounts or first access to features.

More Calculators

  • SaaS Gross Revenue Retention (GRR) Calculator

    Stellen Sie sich die Gross Revenue Retention (GRR) als den lecken Eimer eines SaaS-Unternehmens vor. Je höher der Prozentsatz, desto mehr Umsatz verliert das Unternehmen aufgrund von Kundenabwanderung.
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  • SaaS Net Dollar Retention (NDR) Rechner

    Stellen Sie sich die Net Dollar Retention (NDR) als einen lecken Eimer vor. Eine hohe NDR bedeutet, dass Sie die Lecks flicken und ihn schneller füllen, als Wasser entweichen kann.
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  • SaaS-Erweiterungsumsatzrechner (MRR)

    Stellen Sie sich SaaS-Expansionsumsätze als das Wachstum der monatlichen Einnahmen vor, die von bestehenden Kunden stammen. Dies zeigt den Nutzen des Dienstes und erhöht den Anteil der wiederkehrenden Einnahmen.
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