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C-Level, VP / Director

Measure The Ability of Your Organization to Retain Customers With The Customer Retention Rate KPI

Customer Retention Rate is one of the most important KPIs (if not the most important KPI next to the New Sales KPIs) to subscription based businesses, because it impacts (1) recurring revenue, (2) customer satisfaction levels (which impacts account expansions and referrals) and (3) the growth of the business.

It's hard to overstate the value of customer retention for any organization, as research shows that a modest 5% increase in customer retention can increase profits anywhere from 25% to 95% (source: The Economics of E-Loyalty). In addition to this fact, generating revenue from loyal customers is considerably less expensive than acquiring new customers.

The targets associated with the Customer Retention Rate KPI can vary greatly from business to business. Add this Klip to your Excel dashboard. | Customer Retention Rate KPI

Monitoring SaaS KPIs on a Dashboard

Once you have established benchmarks and targets for measuring Customer Retention, you’ll want to establish processes for monitoring this and other SaaS KPIs. Dashboards can be critical in this regard.

Learn more about how to track your Customer Retention Rate on a SaaS Dashboard.