Renewal Rate

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Customer renewal rate is the percentage rate of customer retention. It measures the rate at which a company’s customers renew their contract.

     Customer Renewal Rate % = 100% – Churn Rate

EXAMPLE: Your average customer pays your business $50 per month (APRU).

EXAMPLE: If your churn rate is 2%, then your renewal rate is 98% (100% – 2% churn rate = 98%). If your negative churn rate is -5%, then your renewal rate is 105%.

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