1. Finance
  2. Revenue & Profit

Customer Retention Cost


Represents the total cost of activities and efforts aimed at retaining existing customers. A high CRC might indicate that a company is spending a lot to keep customers, which could be due to product issues or stiff competition. Comparing CRC to customer lifetime value can provide insights into the return on retention efforts.


Total Retention Spending / Number of Customers Retained


If $10,000 was spent on retention and 500 customers were retained, CRC = $10,000 / 500 = $20 per customer.

Total Retention Spending may include Customer Success and Service costs, training and onboarding costs, loyalty and rewards programs, nurture campaigns, feedback and survey Costs, renewal processes, product upgrade assistance, and community building.