What is customer retention rate in SAP SRD-CRM - CRM-Customer Relationship Management?

SAP Term: customer retention rate

• Component: SRD-CRM

• Component Name: CRM-Customer Relationship Management

• Description: The percentage of customers who buy a product again.

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• Key Concepts: 
  Customer retention rate is a metric used to measure the percentage of customers that remain loyal to a company over a certain period of time. It is an important indicator of customer loyalty and satisfaction, as it shows how well a company is able to retain its customers. 
  
  How to use it: 
  In SAP SRD-CRM CRM-Customer Relationship Management, customer retention rate can be used to measure the success of customer loyalty programs and other initiatives designed to increase customer satisfaction. It can also be used to identify areas where customer service needs improvement, as well as to track the effectiveness of marketing campaigns. 
  
  Tips & Tricks: 
  When measuring customer retention rate, it is important to consider the length of time that customers have been with the company. A longer period of time will provide a more accurate picture of customer loyalty and satisfaction. Additionally, it is important to consider the size of the customer base when calculating customer retention rate, as this will affect the accuracy of the metric. 
  
  Related Information: 
  Customer retention rate is closely related to other metrics such as customer lifetime value and customer churn rate. Additionally, it can be used in conjunction with other metrics such as customer satisfaction scores and Net Promoter Score (NPS) to gain a better understanding of customer loyalty and satisfaction.