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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

Metrics for Business Performance Improvement

  • 1. Revenue Growth Rate

    The percentage increase in revenue over a specific period, indicating business expansion.

    What good looks like for this metric: Typically 5% to 15% annually for stable industries

    Ideas to improve this metric
    • Increase marketing efforts in high-potential areas
    • Launch new products or services
    • Improve pricing strategies
    • Expand into new markets
    • Enhance sales team's efficiency
  • 2. Customer Acquisition Cost (CAC)

    The total cost of acquiring a new customer, including marketing and sales expenses divided by the number of new customers.

    What good looks like for this metric: $20 to $500 depending on the industry

    Ideas to improve this metric
    • Optimise marketing spend
    • Improve targeting in advertising
    • Enhance conversion rate on sales funnel
    • Leverage referrals and word-of-mouth
    • Utilise partnerships and collaborations
  • 3. Customer Retention Rate

    The percentage of customers who continue to do business with a company over a given period.

    What good looks like for this metric: 75% to 90% depending on the industry

    Ideas to improve this metric
    • Enhance customer service and support
    • Implement loyalty programs
    • Regularly engage with customers via newsletters or updates
    • Gather and act on customer feedback
    • Strengthen community or brand connection
  • 4. Net Revenue Retention (NRR)

    The percentage of recurring revenue retained from existing customers over a set period, including upsells, cross-sells, and downgrades.

    What good looks like for this metric: Above 100% is ideal

    Ideas to improve this metric
    • Upsell and cross-sell to existing customers
    • Implement personalised customer experiences
    • Provide seamless customer onboarding and training
    • Regularly review and address customer needs
    • Maintain a competitive offering in the market
  • 5. Profit Margin

    The percentage of revenue that exceeds the costs of producing goods or services, indicating profitability.

    What good looks like for this metric: 10% to 20% for most industries

    Ideas to improve this metric
    • Reduce production or operational costs
    • Streamline supply chain management
    • Negotiate better supplier terms
    • Focus on higher-margin products or services
    • Improve financial management and budgeting

Metrics for Business Development Performance

  • 1. Revenue Growth Rate

    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

    Ideas to improve this metric
    • Reduce operational and production costs
    • Negotiate better supplier contracts
    • Optimize pricing strategies
    • Increase operational efficiency
    • Enhance financial management and reporting

Metrics for Enhancing Product Display Options

  • 1. Conversion Rate

    The percentage of visitors who make a purchase, calculated as the number of purchases divided by the total number of visitors.

    What good looks like for this metric: 2% to 3%

    Ideas to improve this metric
    • Optimise product descriptions and images
    • Simplify the checkout process
    • Highlight customer reviews and testimonials
    • Offer personalised recommendations
    • Implement A/B testing for page elements
  • 2. Average Order Value

    The average amount spent each time a customer places an order, calculated by dividing total revenue by the number of orders.

    What good looks like for this metric: $50 to $100

    Ideas to improve this metric
    • Upsell with related products and bundles
    • Offer discounts for bulk purchases
    • Implement a loyalty programme
    • Provide limited-time offers or promotions
    • Enhance product pages with quality content
  • 3. Bounce Rate

    The percentage of visitors who leave the site after viewing only one page, calculated by dividing single-page visits by total visits.

    What good looks like for this metric: 26% to 40%

    Ideas to improve this metric
    • Improve site loading speed
    • Create strong calls-to-action
    • Ensure mobile responsiveness
    • Enhance overall website design
    • Offer engaging and relevant content
  • 4. Time on Page

    The average amount of time users spend on a product page, indicating engagement levels.

    What good looks like for this metric: 2 to 3 minutes

    Ideas to improve this metric
    • Enhance product descriptions and features
    • Use high-quality images and videos
    • Utilise interactive elements
    • Provide detailed FAQs and tutorials
    • Optimise layout for readability
  • 5. Customer Retention Rate

    The percentage of repeat customers over a specific time period, indicating loyalty and satisfaction.

    What good looks like for this metric: 20% to 30%

    Ideas to improve this metric
    • Deliver exceptional customer service
    • Introduce membership or rewards programmes
    • Implement feedback mechanisms and surveys
    • Communicate through targeted email marketing
    • Continuously update and improve product offerings

Tracking your Customer Retention Rate metrics

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.

Tability Insights DashboardTability's check-ins will save you hours and increase transparency

More metrics recently published

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Planning resources

OKRs are a great way to translate strategies into measurable goals. Here are a list of resources to help you adopt the OKR framework:

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