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.
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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.
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
This is calculated by dividing the number of employees who left during a period by the average number of employees during that period, then multiplying by 100
What good looks like for this metric: 10-15%
Ideas to improve this metric
Enhance employee engagement programmes
Improve career development opportunities
Conduct regular employee feedback sessions
Competitive salary and benefits packages
Strengthen company culture and values
2. Voluntary vs Involuntary Turnover
Compares employees who voluntarily resigned versus those who were terminated
What good looks like for this metric: Higher voluntary turnover indicates employee dissatisfaction
Ideas to improve this metric
Analyse exit interviews for patterns
Identify root causes for turnover
Address workplace grievances promptly
Implement employee retention strategies
Regularly assess job satisfaction levels
3. Average Employee Tenure
Measures the average length of time employees stay with the company
What good looks like for this metric: 3-5 years
Ideas to improve this metric
Provide ongoing training and development
Offer clear career progression paths
Recognize and reward long-term employees
Encourage internal mobility
Build strong leadership and management
4. Cost of Employee Turnover
Calculates the cost associated with losing and replacing employees, including recruiting, training, and loss of productivity
What good looks like for this metric: Typically 33% of an employee's annual salary
Ideas to improve this metric
Invest in effective hiring processes
Use retention strategies to reduce turnover
Improve onboarding processes
Foster a positive work environment
Regularly review compensation strategies
5. New Hire Turnover Rate
Monitors the percentage of new employees who leave within a specific period, usually within the first year
Measures the percentage increase in active users over a specific period. Calculated by (New Active Users - Previous Active Users) / Previous Active Users * 100
What good looks like for this metric: 15-25% monthly growth
Ideas to improve this metric
Offer incentives for referrals
Enhance user onboarding experience
Regularly update features based on feedback
Engage users through targeted communications
Improve user education and support
2. Retention Rate
Tracks the percentage of users who continue to use the platform over time. Calculated by (Number of Retained Users / Total Active Users) * 100
What good looks like for this metric: 70-90% monthly retention
Ideas to improve this metric
Personalise user experiences
Implement loyalty programs
Regularly collect and act on feedback
Offer continuous updates and improvements
Resolve user issues promptly
3. Churn Rate
Represents the percentage of users who discontinue use in a specific timeframe. Calculated by (Number of Churned Users / Total Users at Start) * 100
What good looks like for this metric: Below 5% monthly churn
Ideas to improve this metric
Identify and address user pain points
Implement a win-back strategy
Ensure consistent value delivery
Maintain proactive customer support
Use exit surveys to gain insights
4. Average User Session Duration
Indicates how much time users spend during a session using the platform
What good looks like for this metric: 5-10 minutes per session
Ideas to improve this metric
Design engaging and valuable content
Implement user engagement features
Ensure smooth user interface and experience
Personalise content and recommendations
Streamline navigation and access
5. Adoption Rate
Measures how quickly new users adopt the platform. Calculated by (New Users / Total Potential Users) * 100
What good looks like for this metric: 10-20% quarterly increase
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