Customer Renewal Rate - Sales Glossary - Upnify
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Customer Renewal Rate

In addition to the conversion rate and the Churn Rate, in order to have complete information about your company it is also important to measure the renewal rate of your customers, that is, the percentage of customers who continued consuming your product or service in a previously established period of time.

The customer renewal rate is the number of customers who renewed their service among the number of customers who should have renewed in a specific period.

Renewal Rate formula

For example, let's assume that in the month just ended, you should have renewed 150 customers, but you only renewed 120 customers.

Renewal Rate example

the result would be an 80% renewal rate during that period.

The Sales Glossary is a compendium of all the most commonly used terminology in sales strategy. Many of the concepts listed here are used when implementing a CRM system or a digital sales funnel, no matter if they are legacy systems or an online CRM. See also our blog that deals with sales techniques, marketing and sales culture.