Customer Retention Graphs

Impact of Increased Customer Retention Over Time

The graph above demonstrates the impact of a customer retention rate increase of 5% when two companies start off with the same amount of customers and the same customer acquisition rate. The result: Company B doubles its customer base around the 9th year, while it takes Company A slightly more than 15 years to double its customer base. On average, this means Company B also profited by a higher percentage.

Assumptions: Both companies start with a customer base of 100,000 customers and an acquisition rate of 20% (e.g. yearly each company's customer base grows by 20%). Company A has 85% customer retention rate and Company B has a customer retention rate of 90%. The graph assumes that the customer retention and acquisition rates remain the same year after year.

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