Marketing
Customer retention rate
Helps managers answer: To what extent are we keeping the customers we have acquired?
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Customer retention rate vs Customer turnover rate
These models cover closely related ground. Compare their purpose, scope, practical guidance, and supporting resources to choose the better fit.
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Marketing
Customer turnover rate
Helps managers answer: How well are we retaining customers?
Read articleChoice logic
Use this when.
Answer the key performance question: “To what extent are we keeping the customers we have acquired?”
Answer the key performance question: “How well are we retaining customers?”
Extracted signals
Strengths, limits, and pitfalls.
Customer retention rate
- Define and count the customer consistently before calculating the rate. A telecom provider must decide whether one person with phone, tablet, mobile and broadband contracts is one customer or several, and whether a family contract represents one relationship or multiple people.
Watch for
- Never treat retention as a complete customer health measure. Pair it with customer profitability and customer satisfaction so that high retention caused by switching friction is not mistaken for a healthy, valuable relationship.
Customer turnover rate
- Create a clear save and win back process for customers shown to be vulnerable, but connect every offer to the reason the relationship is at risk. A discount cannot repair recurring service failure, and a retention team cannot compensate indefinitely for a broken product or policy.
Watch for
- Separate voluntary churn, where a customer chooses to leave, from involuntary churn caused by events such as relocation or death, and from forced churn initiated by the company for reasons such as non payment. The organisation can influence these categories in very different ways.
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Application bridge
Related templates.
Program Benefits Sustainment PlanProgram Benefits Sustainment Plan Purpose. Use this plan to maintain the conditions that allow programme benefits to continue accruing after transition. It turns the handover commitments in the benefits transition plan into enduring operational mechanisms, measures, responsibilities and responses. Application. Treat it as a living document. Customer demand, operating capacity, technology, regulatiProgram Quality ChecklistProgram Quality Checklist Purpose. Use this checklist to gather consistent evidence about the quality of programme deliverables, services, management outcomes and cost or schedule performance. Application. It can structure a quality review meeting or inform questions for sponsors, customers, beneficiaries and end users. Tailor each verification question to a defined requirement or acceptance criteComponent Transition RequestComponent Transition Request Purpose. Use this request to obtain formal approval to close a programme component and transfer its deliverables, knowledge, responsibilities and benefits to operations, customers or users. It demonstrates that the component has sufficiently satisfied its business case, completed its required deliverables and milestones, and is ready for its final lifecycle transition.Contracts Management PlanContracts Management Plan Purpose. Use this plan to define how programme-level contracts will be administered from award through closure. Its purpose is to ensure that contracted deliverables and services meet cost, schedule, benefit and quality requirements while both buyer and seller fulfil their obligations. Application. The plan builds on the procurement management plan and may be maintained a