The percentage of existing customers who continue to buy over a defined period.

What it Measures ?

How many customers stayed with us.

Relevant StakeHolders 

Customer Success, Sales Leadership

In-depth Use Case / Real-world Example

Customer Retention Rate signals long-term value and client satisfaction. For instance, if a machinery manufacturer starts the year with 500 customers and ends with 475 of those still buying (excluding new customers), the retention rate is (475 ÷ 500) × 100 = 95%. High retention is often more profitable than acquiring new customers. For manufacturing firms, repeat customers could mean long-term contracts, service agreements, and predictable demand. A low retention rate might indicate service issues, pricing dissatisfaction, or better competitor offerings. Analyzing this KPI helps businesses enhance after-sales service, develop loyalty programs, and allocate account managers more effectively.