3 examples of Customer Retention Rate metrics and KPIs
What are Customer Retention Rate metrics?
Crafting the perfect Customer Retention Rate metrics can feel overwhelming, particularly when you're juggling daily responsibilities. That's why we've put together a collection of examples to spark your inspiration.
Transfer these examples to your app of choice, or opt for Tability to help keep you on track.
Find Customer Retention Rate metrics with AI
While we have some examples available, it's likely that you'll have specific scenarios that aren't covered here. You can use our free AI metrics generator below to generate your own strategies.
Examples of Customer Retention Rate metrics and KPIs
Percentage increase in revenue over a specified period, calculated as (Current Period Revenue - Previous Period Revenue) / Previous Period Revenue * 100
What good looks like for this metric: 5-10% annually for stable growth
Ideas to improve this metric
Enhance sales team training
Expand product/service offerings
Improve market analysis for new opportunities
Increase customer referrals and testimonials
Implement targeted marketing strategies
2. Customer Acquisition Cost (CAC)
Total cost of acquiring a new customer, calculated as total sales and marketing expense / number of new customers acquired
What good looks like for this metric: Typically $1 to $300 per customer
Ideas to improve this metric
Optimize marketing channels for efficiency
Improve targeting of ideal customer profiles
Enhance website conversion rates
Leverage partnerships and collaborations
Increase use of digital marketing tools
3. Customer Retention Rate
Percentage of customers retained over a given period, calculated as ((End of Period Customers - New Customers) / Start of Period Customers) * 100
What good looks like for this metric: 70-90% depending on the industry
Ideas to improve this metric
Improve product/service quality
Enhance customer support experience
Develop customer loyalty programmes
Regularly gather and act on customer feedback
Create engaging communication and content
4. Net Revenue Retention (NRR)
Percentage of recurring revenue retained from existing customers, including upgrades/downgrades, calculated as (Starting Revenue + Expansion Revenue - Churn) / Starting Revenue * 100
What good looks like for this metric: Over 100% indicates good growth
Ideas to improve this metric
Upsell existing customers to higher-tier plans
Introduce new features to drive value
Regularly communicate new offerings to customers
Reduce churn by addressing common concerns
Conduct regular account reviews with key clients
5. Profit Margin
Percentage of revenue that exceeds total costs, calculated as (Net Income / Revenue) * 100
What good looks like for this metric: 10-20% is common in the industry
Having a plan is one thing, sticking to it is another.
Don't fall into the set-and-forget trap. It is important to adopt a weekly check-in process to keep your strategy agile – otherwise this is nothing more than a reporting exercise.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.