Issue link: https://www.ascpskindeepdigital.com/i/1062563
expertadvice MIND YOUR BUSINESS What's Your Return Rate? Learn to Calculate Your Client Retention by Kristin Coverly Follow these steps to calculate your CRR: 1. Choose a time period to study—three months, six months, a year, etc. 2. Determine the total number of clients you had in your client portfolio at the beginning of the time period. 3. Calculate the total number of sessions you gave during that time period. 4. Determine how many of those clients were existing clients before the start of the time period and how many clients were new. 5. Start calculating! Divide the number of existing clients who came for a session by the total number of existing clients you had at the beginning of the time period. 6. Use the formula boxes below to walk you through the process. You've got your CRR for that time period! Now what? Let's look at some examples using figures from Mable's Skin Care to show how you can use this formula to evaluate what's happening in your practice and set goals to make change. Here are Mable's initial figures. We're all on board with the idea that it's more efficient to keep the clients we already have coming back than it is to be constantly working to gain new clients, right? And that return clients offer many other benefits like new client referrals? Fantastic! So, what's your current client retention rate (CRR)? Is it where you want it to be, or do you need to put a little more time and attention into your client retention strategies? If you're like the majority of esties I coach, you probably have a general sense of the number of clients who come back regularly, but you've never calculated your actual CRR before (and aren't sure how to get started). It's worth taking the time to calculate and track your rate because when you know the accurate percentage of clients who came back within a certain time frame, you can evaluate your current strategies and set measurable goals for growth. Or, as I like to say: know so you can grow. LET'S CALCULATE Before we go through the steps to calculate your CRR, test your knowledge of your practice. Take a guess at what you think your rate is and we'll see how close you come to the actual figure. Now, let's do some math. Number of all existing clients at the beginning of the time period: Breakdown of clients during the time period: Total sessions = _____ _____ = existing _____ = new Client Retention Rate (CRR) Calculate the % of all existing clients who came for a session during the time period: _______ ÷ _______ = _______ Existing clients during time period Total clients at the beginning of the time period Client Retention Rate Number of all existing clients at the beginning of the time period: 80 Breakdown of clients during the time period: Total sessions = 100 40 = existing 60 = new Client Retention Rate (CRR) Calculate the % of all existing clients who came for a session during the time period: 40 ÷ 80 = 50% Existing clients during time period Total clients at the beginning of the time period Client Retention Rate