What are Retention Rate metrics? Finding the right Retention Rate metrics can be daunting, especially when you're busy working on your day-to-day tasks. This is why we've curated a list of examples for your inspiration.
Copy these examples into your preferred tool, or adopt Tability to ensure you remain accountable.
Find 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 Retention Rate metrics and KPIs 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
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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
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1. Conversion Rate The percentage of referred visitors who take a desired action, such as making a purchase
What good looks like for this metric: 5-10%
Ideas to improve this metric Improve landing page design Provide clear call-to-action Offer tailored promotions Optimise user experience Segment traffic for analysis 2. Average Order Value (AOV) The average dollar amount spent each time a customer completes an order
What good looks like for this metric: $100-$200
Ideas to improve this metric Upsell complementary products Introduce product bundles Offer discounts on larger purchases Highlight premium offerings Ensure easy checkout process 3. Customer Retention Rate The percentage of repeat customers over a specific period
What good looks like for this metric: 20-40%
Ideas to improve this metric Strengthen customer relationships Initiate loyalty programmes Provide exceptional customer service Ensure consistent communication Gather and act on feedback 4. Click-Through Rate (CTR) The percentage of people who click on the affiliate link compared to those who view it
What good looks like for this metric: 1-2%
Ideas to improve this metric Use compelling ad copy Design eye-catching creatives Test various link placements Target the right audience Optimise for mobile devices 5. Return on Investment (ROI) A measure of the profitability of the affiliate program relative to its cost
What good looks like for this metric: 150-200%
Ideas to improve this metric Reduce acquisition costs Enhance affiliate relationships Optimise budget allocation Track and analyse expenses Focus on high-performing affiliates
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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
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1. User Satisfaction Score Measures the satisfaction levels of users with the UX design via surveys like SUS or NPS
What good looks like for this metric: Average score ranges from 68 to 80
Ideas to improve this metric Conduct regular user feedback sessions Implement iterative design improvements Enhance usability based on pain points Improve interface consistency Ensure accessibility compliance 2. Task Success Rate Percentage of correctly completed tasks without assistance
What good looks like for this metric: Typically ranges from 78% to 85%
Ideas to improve this metric Simplify task flows Increase clarity in instructions Use intuitive design patterns Conduct A/B testing for task paths Provide effective user training 3. Time on Task Measures the average time users spend to complete a task
What good looks like for this metric: Varies widely depending on the complexity of tasks
Ideas to improve this metric Identify and remove bottlenecks Streamline task steps Improve information architecture Enhance system responsiveness Use user testing to target slow task areas 4. Error Rate The frequency of errors made by users during tasks
What good looks like for this metric: Aim to be below 5%
Ideas to improve this metric Enhance input validation Provide clear error messages Refine user instructions Improve interface intuitiveness Conduct usability testing to find error hotspots 5. Retention Rate Percentage of users who continue to use the product over time
What good looks like for this metric: Typically above 25% over a year
Ideas to improve this metric Improve user onboarding Enhance engagement with features Encourage feedback and implement changes Ensure regular updates and improvements Analyse and reduce user drop-off points
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1. Employee engagement score Measures the level of engagement employees feel towards their work, typically gathered through surveys
What good looks like for this metric: 70-80%
Ideas to improve this metric Encourage open communication Provide opportunities for feedback Recognize and reward achievements Offer professional development programs Foster a positive work environment 2. Employee retention rate Calculated as the percentage of employees who stay with the company over a specific period
What good looks like for this metric: 85-90%
Ideas to improve this metric Create clear career paths Provide competitive compensation Ensure work-life balance Foster a strong company culture Conduct exit interviews 3. Professional development participation Tracks the number of employees engaging in professional development activities
What good looks like for this metric: 60-75%
Ideas to improve this metric Promote development opportunities Subsidize costs of courses Incorporate development into performance reviews Provide time for learning Highlight success stories 4. Internal promotion rate Percentage of roles filled by internal candidates rather than external hires
What good looks like for this metric: 15-20%
Ideas to improve this metric Identify and groom top talent Offer leadership training Create mentorship programs Set clear promotion criteria Monitor and address skill gaps 5. Work-life balance score Evaluates how employees feel about their work-life balance, often measured through surveys
What good looks like for this metric: 70-80%
Ideas to improve this metric Implement flexible work hours Encourage taking vacations Promote wellness programs Regularly assess workloads Provide support for remote work
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Tracking your Retention Rate metrics Having a plan is one thing, sticking to it is another.
Setting good strategies is only the first challenge. The hard part is to avoid distractions and make sure that you commit to the plan. A simple weekly ritual will greatly increase the chances of success.
A tool like Tability can also help you by combining AI and goal-setting to keep you on track.
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