What Is a Customer Retention Dashboard?
A customer retention dashboard is an essential tool for SaaS businesses to monitor the real-time performance of their customer acquisition, retention, and account health. By tracking key metrics such as net retention, cancellations, contractions, expansions, account retention, and monthly recurring revenue (MRR), this dashboard provides valuable insights that help drive data-driven decisions and address potential issues before they escalate.
A successful business aims for a net retention of 100% or more, indicating monthly growth and customer satisfaction. Building and sharing a retention dashboard with your team emphasizes the importance of customer retention and encourages the implementation of effective strategies, such as onboarding and training new customers to minimize churn and maximize revenue stability.
Acquiring new customers can be expensive for SaaS companies, which is why customer retention is so critical. Taking the time to onboard and train new customers can help minimize churn and save time and money for the business.
How to track net retention
Customer retention is tracked by looking at the ratio of Expansion (positive growth from the existing customer base): Churn (where the whole account is canceled) & Reduction (where the account downgrades its plan with less MRR).
By calculating net retention on a monthly basis, you’re able to understand how successful your customers are with your product. The goal of any business should be to maintain a net retention of 100% or more. This means that you are bringing in more than you are losing each month, which indicates monthly growth in your business. Also, consider tracking Gross Retention to measure revenue stability.
How we track customer retention
Here’s a quick video from our Customer Loyalty Guru, Trish Mermuys, about what SaaS dashboards she uses to track key customer retention metrics.
Net Retention Dashboard Example
Understanding customer retention is critical to all SaaS businesses, and visibility into this metric is just as important. Here is a Net Retention Dashboard example that gives a team constant visibility into performance.
Customer Retention Metrics
Ratio of Expansion (positive growth from the existing customer base) : Churn (where the whole account is cancelled) & Reduction (where the account downgrades their plan with less MRR).
Number of customers who have ended their contract with you.
Customers who have moved to a lower tier or level of your product/service offering.
Customers who have moved up to a higher tier or level of your product/service offering or have added extra features to their current plan.
Number of customers who are continuing their subscription with you.
Monthly Recurring Revenue is the dollar amount your business makes each month from customers. This is how subscription based services charge their customers.
How to show the importance of retention to your team
Customer retention is one of the most important metrics for a SaaS company to track which is why getting your team to rally around this metric is so valuable. We often focus attention on number of new accounts and forget about the accounts we already have.
By building a retention dashboard, you can easily share this data with your team and highlight the importance of retention and key strategies like onboarding and training new customers to help reduce the risk of churn.
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