Measures the percentage of products returned due to defects or quality issues.
What it Measures ?
% of products returned due to issues.
Relevant StakeHolders
Quality, Customer Support
In-depth Use Case / Real-world Example
A company manufacturing smartphones tracks Return Rate (Defects/Quality Issues) by recording the percentage of returns caused by defects. For example, if 100 out of 5000 smartphones sold are returned due to defects, the return rate is 2%. This helps identify quality control issues and the effectiveness of manufacturing processes in preventing defects.
KPI Definition
Business Value
Movement Direction
Sample Formula
(Number of Defective Returns / Total Units Sold) * 100
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