What is a customer renewal rate?
Customer renewal rate is the percentage rate of customer retention. It measures the rate at which a company’s customers renew their contract.
How do you calculate a customer renewal rate?
Customer Renewal Rate % = 100% – Churn Rate
EXAMPLE: Your average customer pays your business $50 per month (APRU). 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%.« Back to Glossary Index