Why this metric matters more than daily revenue
A diabetic customer on Metformin, a statin, and an antihypertensive follows up every 30 days. We calculate what that customer is worth annually — and what it costs when they switch businesses. Revenue is a lagging indicator — it tells you what already happened. Retention metrics are leading indicators — they tell you what will happen to revenue in 60–90 days. The local businesses that catch problems early are the ones watching their retention numbers, not just their daily sales.
How to calculate this at your business
You need three data points: the number of customers who were due for a follow-up, the number who actually followed up, and the time window you're measuring. Monthly tracking gives you a trend. Quarterly tracking gives you a pattern. Ferbz calculates all of this automatically from your customer records.
What the benchmarks look like
Top-performing local businesses retain 75–80% of their regular customers month over month. The industry average is 55–60%. A business below 45% is losing customers faster than it can replace them — a situation that requires immediate intervention.
How to improve the number you're tracking
Every percentage point of retention improvement requires a specific intervention. Better reminder timing, improved message personalisation, and proactive outreach to inactive customers each contribute differently. Ferbz's analytics tab shows which interventions have the highest impact for your specific customer mix.