How can you measure renewal metrics and KPIs for customer onboarding?

1 Renewal rate

Renewal rate is the percentage of customers who renew their contract or subscription at the end of a given period. It is a direct indicator of customer satisfaction and loyalty, as well as a source of recurring revenue. To calculate renewal rate, you need to divide the number of customers who renewed by the number of customers who were up for renewal in a specific time frame. For example, if you had 100 customers who were due to renew in January, and 80 of them did, your renewal rate for January would be 80%. A high renewal rate means that your onboarding has successfully delivered value and met customer expectations.

3 Net Promoter Score (NPS)

Net Promoter Score (NPS) is a metric that measures customer loyalty and advocacy. It is based on a simple question: How likely are you to recommend our product or service to a friend or colleague? Customers can answer on a scale of 0 to 10, where 0 is extremely unlikely and 10 is extremely likely. Based on their response, customers are classified into three categories: detractors (0-6), passives (7-8), and promoters (9-10). To calculate NPS, you need to subtract the percentage of detractors from the percentage of promoters. For example, if you had 50% promoters, 30% passives, and 20% detractors, your NPS would be 30%. A high NPS means that your onboarding has created loyal customers who are willing to spread positive word-of-mouth about your brand.

5 Onboarding completion rate

Onboarding completion rate is the percentage of customers who finish all the steps or tasks required to complete the onboarding process. It is a measure of customer engagement and adoption, as well as a predictor of renewal and retention. To calculate onboarding completion rate, you need to identify the key actions or milestones that customers need to take or achieve to be fully onboarded, and track how many of them do so within a specific time frame. For example, if your onboarding process consists of five steps, such as creating a profile, importing data, setting up preferences, completing a tutorial, and scheduling a follow-up call, and 80 out of 100 customers do all of them within 30 days, your onboarding completion rate would be 80%. A high onboarding completion rate means that your onboarding has engaged customers and encouraged them to use your product or service to its full potential.