Customer Retention Rate (CRR) is a key performance indicator that shows how well a consumer goods brand keeps its existing customers coming back. It reveals how successful the brand is at creating loyalty, trust, and repeat business in a competitive market.

This KPI is critical for long-term success because acquiring new customers is often more expensive than retaining existing ones. A high CRR means the brand has strong relationships and consistent performance across its value chain.

Why It Is Important for Retail Brands to Track It

Tracking Customer Retention Rate helps consumer goods brands:

• Reduce acquisition costs by focusing on long-term customer value
  
• Improve forecasting as loyal customers tend to have predictable buying behavior
  
• Strengthen brand equity by building trust and positive experiences
  
• Enhance profitability through repeat purchases and lower churn
  

How to measure Customer Retention Rate?

Customer Retention Rate measures the percentage of customers a brand keeps over a period of time.

Formula:

Customer Retention Rate = ((E – N) / S) x 100

• E = Customers at end of period
  
• N = New customers acquired
  
• S = Customers at start of period
  

Example:
If you started with 1,000 customers, gained 300 new ones, and ended with 1,100:

((1100 – 300) / 1000) x 100 = 80%

A higher rate means your customers are satisfied and find continued value in your offerings.

What Drives Customer Retention Rate?

Two main sub-KPIs drive the Customer Retention Rate:

1. Customer Churn Rate
   
2. Repeat Purchase Rate
   

Each one gives insight into why customers leave or return, making it easier to fine-tune your field strategies.

Sub-KPI 1: What Is Customer Churn Rate?

The Customer Churn Rate tells you what percentage of your customers stop buying from you during a certain period.

Why It Matters:

• Helps identify product or service issues
  
• Alerts teams about weakening brand loyalty
  
• Supports proactive actions to reduce losses
  

How It’s Measured:

Customer Churn Rate = (Customers Lost During Period / Total Customers at Start) x 100

Example:
If you started with 500 customers and lost 50:

(50 / 500) x 100 = 10%

How to Achieve It:

• Analyze churn reasons from outlet data
  
• Improve on-shelf availability and service levels
  
• Ensure regular visits to high-risk outlets
  
• Launch engagement campaigns for inactive customers
  

Sub-KPI 2: What Is Repeat Purchase Rate?

Definition:
Repeat Purchase Rate tracks how many customers buy from your brand more than once in a given period.

Why It Matters:

• Indicates brand loyalty and product satisfaction
  
• Boosts lifetime customer value
  
• Reflects consistency in field execution
  

How It’s Measured:

Repeat Purchase Rate = (Number of Repeat Customers / Total Customers) x 100

Example:
If 300 out of 800 customers made a second purchase:

(300 / 800) x 100 = 37.5%

How to Achieve It:

• Keep bestsellers in stock at key outlets
  
• Focus on outlet-level visibility and planograms
  
• Personalize offers for frequent buyers
  
• Maintain consistent service through field visits
  

How These Sub-KPIs Drive Customer Retention Rate

A low churn rate and high repeat purchase rate are the perfect combination to raise Customer Retention Rate.

• If churn decreases from 15% to 7%, you’re keeping more customers.
  
• If repeat purchase increases from 30% to 50%, you’re deepening loyalty.
  
• Together, they show customers stay longer and buy more — key signs of healthy retention.
  

How to Drive Execution at Scale

To improve Customer Retention Rate across markets:

• Set daily goals on repeat visits and engagement per outlet
• Use visit plans focused on high-value or churn-prone outlets
• Track field inputs on repurchase indicators and lost sales
• Take fast action when churn signals appear
  

How BeatRoute Can Help

This is where BeatRoute’s goal-driven AI framework comes in.

• Set customer retention and churn prevention goals for your teams and channel partners
• Empower them with agentic AI workflows to drive customer engagement
• Gamify them to improve their input behavior in the market
• Solve customer engagement and retention challenges with BeatRoute Copilot
  

Conclusion

Customer Retention Rate is one of the strongest indicators of long-term brand health. By tracking and improving Customer Churn Rate and Repeat Purchase Rate, retail brands can hold on to valuable customers and grow predictably.

Success depends on field teams doing the right things daily — visiting the right outlets, solving customer pain points, and keeping products available. With the right systems to guide and motivate them, retention becomes not just possible — but repeatable.

👉This KPI is a core execution metric recognized across the global consumer goods and FMCG industry. It is widely used to measure field performance, outlet-level impact, and sales execution effectiveness. Tracking this KPI helps retail brands align local and national execution with broader business goals like growth strategy, market expansion, and profitability.