Measures the percentage of customers who continue using services over a given period.

What it Measures ?

How many customers stay with us.

Relevant StakeHolders 

Customer Success, Account Managers

In-depth Use Case / Real-world Example

Customer Retention Rate tracks how effectively a company retains customers for ongoing services. For example, if 80 out of 100 service customers renew their contracts, the retention rate is 80%. A high retention rate indicates strong customer loyalty and satisfaction. In manufacturing, where services like equipment maintenance or repair contracts are common, retaining customers is often more cost-effective than acquiring new ones. This KPI helps service teams focus on providing value to existing customers.