Meaning ● Customer Retention Rate (CRR) quantifies an SMB’s ability to keep customers engaged over a given period, a vital metric for sustainable business expansion. This figure directly impacts profitability, as acquiring new customers often costs more than retaining existing ones, especially critical for bootstrapped SMBs. ● For SMBs, automating customer relationship management (CRM) processes often boosts CRR through personalized interactions and streamlined support, reflecting positively on implementation effectiveness. Calculating CRR requires knowing the number of customers at the start and end of a period, and the number of new customers acquired during that same time. ● Furthermore, a high CRR indicates successful implementation of customer-centric strategies, from product development to post-sale support. The emphasis is on delivering consistent value and adapting to customer needs; poorly implemented automation can adversely affect retention if it neglects the human element in customer interactions.
