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	<title>tangyslice &#187; customer retention metrics</title>
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	<itunes:summary>sharp. social. accountable.</itunes:summary>
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		<title>Customer Retention Metrics</title>
		<link>http://www.tangyslice.com/2008/11/11/customer-retention-metrics/</link>
		<comments>http://www.tangyslice.com/2008/11/11/customer-retention-metrics/#comments</comments>
		<pubDate>Tue, 11 Nov 2008 13:48:56 +0000</pubDate>
		<dc:creator>Frank</dc:creator>
				<category><![CDATA[Accountable Marketing]]></category>
		<category><![CDATA[customer retention metrics]]></category>

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		<description><![CDATA[How do you track the success of customer or account management programs?  Here are some examples I&#8217;ve seen: Customer retention rate = The percentage of customers who stay with you over the total number of customers.  The downside is that &#8230; <a href="http://www.tangyslice.com/2008/11/11/customer-retention-metrics/">Continue reading <span class="meta-nav">&#8594;</span></a>]]></description>
			<content:encoded><![CDATA[<p>How do you track the success of customer or account management programs?  Here are some examples I&#8217;ve seen:</p>
<ul>
<li><a href="http://searchcrm.techtarget.com/expert/KnowledgebaseAnswer/0,289625,sid11_gci1216030,00.html">Customer retention rate</a> = The percentage of customers who stay with you over the total number of customers.  The downside is that this number ignores the fact that some customers are more important/valuable than others.</li>
<li>Revenue retention rate = Percentage of total potential revenue retained.  This metric misses the impact of account expansion but works better in environments with predictable customer contracts.</li>
<li>Average customer revenue (revenue yield) = total revenue divided by the number of customers.  This  gives you a sense of how well you are growing your wallet share with customers.</li>
<li>Repeat purchase rate: As the name implies, this reflects the percentage of business from existing customers.</li>
<li><a href="http://www.netpromoter.com/calculate/index.php">Net promoter score</a>: The industry standard metric captures how likely a customer is to tell a friend about your business.</li>
</ul>
<p>I&#8217;ve seen a range of approaches and find that more than one metric is often needed to tell the whole story.</p>
<p>Did I miss any other meaningful retention metrics?</p>
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