登录查看更多内容

What are the most important KPIs for your renewal process?

由人工智能和领英社区提供技术支持

If you run a subscription-based business, you know how crucial it is to retain your customers and increase their lifetime value. But how do you measure and improve your renewal process? In this article, you'll learn about the most important key performance indicators (KPIs) for your renewal process and how to use them to optimize your customer relationship management (CRM) strategy.

此文章中的业界达人

由社区从 5 条内容中精选。了解更多

Mohamed Nashaat

Customer Services Consultant | Telecommunications & Healthcare Operations Expert | Customer Experience Excellence &…
Rajesh Bhutra

VP Enterprise Sales, MBA-ITSM NMIMS GLOBAL(Grade A), PGD in Business Operations & Sustainability,ICWAI Inter
Ifeoma Obi

Business Growth Strategist | Empowering Organizations Through Effective Marketing and Operations

1 Renewal rate

The renewal rate is the percentage of customers who renew their contracts or subscriptions at the end of a given period. It's a simple but powerful indicator of customer satisfaction, loyalty, and retention. A high renewal rate means that your customers are happy with your product or service and see value in continuing their relationship with you. A low renewal rate means that you have a high churn rate and need to identify and address the reasons why customers are leaving.

To calculate your renewal rate, divide the number of customers who renewed by the number of customers who were up for renewal in a given period. For example, if you had 100 customers who were due to renew in a month and 80 of them did, your renewal rate for that month is 80%. You can also calculate your renewal rate by revenue, dividing the recurring revenue from renewed customers by the recurring revenue from customers who were up for renewal.

添加您的观点

Mohamed Nashaat

Customer Services Consultant | Telecommunications & Healthcare Operations Expert | Customer Experience Excellence & Operations Guru l CPHQ, TOT, Six Sigma White Belt, PMP Certified l MBA Holder l DBA In Process
举报内容
in my opinion -Customer lifetime value -Renewal rate -Churn rate -Customer satisfaction -Retention rate -Churn -Close rate -Customer acquisition cost -Net promoter score

已翻译

赞
Rajesh Bhutra

VP Enterprise Sales, MBA-ITSM NMIMS GLOBAL(Grade A), PGD in Business Operations & Sustainability,ICWAI Inter
举报内容
The renewal rate % depends on the following factors a) Customer's satisfaction and utility level of your solution or services provided b) Account managers relationship with the key stakeholders at the client end d) Your brand visibility in the market which makes a customer think twice before refusing renewal. e) Monetary benefits accrued from the solution or services imparted if the solution/service is meant for cost optimization. f) How the solution helps support in ease of doing things or streamline operations effectively in the client environment if the solution is a utility software such as Endpoint management tool etc.

已翻译

赞
Ifeoma Obi

Business Growth Strategist | Empowering Organizations Through Effective Marketing and Operations
举报内容
Customer satisfaction is the ultimate measurement of the success my business. Without the customer there are no revenues and no reason for my business. My focus and main purpose is to provide a product or service that the customer values beyond that of my competitors. As an entreprenuer, i must serve my stakeholders in such a way to have a repeat of business and referrals to stay afloat.

已翻译

赞

2 Net retention rate

The net retention rate is the percentage of recurring revenue that you retain from your existing customers over a given period, after accounting for upgrades, downgrades, cross-sells, upsells, and churn. It's a more comprehensive indicator of customer retention and growth than the renewal rate, as it reflects not only how many customers stay with you, but also how much they spend with you.

To calculate your net retention rate, divide your recurring revenue at the end of a period by your recurring revenue at the beginning of the period, excluding any revenue from new customers. For example, if you had $10,000 in recurring revenue from existing customers at the start of a quarter and $11,000 at the end of the quarter, your net retention rate for that quarter is 110%. A net retention rate above 100% means that you are generating more revenue from your existing customers than you are losing from churn and downgrades, which is a sign of a healthy and growing business.

添加您的观点

3 Customer satisfaction score

The customer satisfaction score (CSAT) is a measure of how satisfied your customers are with your product or service, based on their feedback. It's a direct indicator of customer happiness, loyalty, and advocacy, as well as a predictor of renewal likelihood. A high CSAT score means that your customers are pleased with your offering and likely to renew and recommend you to others. A low CSAT score means that your customers are unhappy with your offering and likely to churn and spread negative word-of-mouth.

To calculate your CSAT score, ask your customers to rate their satisfaction with your product or service on a scale of 1 to 5, where 1 is very dissatisfied and 5 is very satisfied. Then, divide the number of customers who gave you a 4 or 5 by the total number of customers who responded. For example, if you had 100 customers who responded to your survey and 80 of them gave you a 4 or 5, your CSAT score is 80%. You can also calculate your CSAT score by using other scales, such as 1 to 10 or 1 to 7, as long as you adjust the threshold for positive ratings accordingly.

添加您的观点

Parker L.

Digital Marketer / Entrepreneur / Marathoner
(已编辑)
举报内容
These score are all BS, the only measurement for the satisfaction of the customer is the annual spent growth rate. I have never encounter an unsatisfied customer and yet continue to spend more on the product/service. if the spent is increased every year there are nothing you should too worry about. If the spent is dropped for consecutive 2 months without reason like seasonal drop/sales before vacation, you should review the account immediately.

已翻译

赞

4 Customer effort score

The customer effort score (CES) is a measure of how easy or difficult it is for your customers to interact with your product or service, based on their feedback. It's an indicator of customer convenience, efficiency, and frustration, as well as a predictor of renewal likelihood. A low CES score means that your customers find it easy to use your product or service and achieve their desired outcomes. A high CES score means that your customers find it hard to use your product or service and encounter obstacles and problems.

To calculate your CES score, ask your customers to rate how much effort they had to put in to use your product or service on a scale of 1 to 5, where 1 is very low effort and 5 is very high effort. Then, calculate the average of all the ratings. For example, if you had 100 customers who responded to your survey and their ratings were 1, 2, 2, 3, 4, 5, 5, 5, 5, and 5, your CES score is 3.7. You can also calculate your CES score by using other scales, such as 1 to 10 or 1 to 7, as long as you adjust the interpretation of the scores accordingly.

添加您的观点

5 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

添加您的观点

Márcio Oliveira

LinkedIn Top Voice | Sócio da Quid Si e da Mind to Mind | Colunista Exame | Mentor, Consultor, Palestrante e Professor de Relacionamento c/ Clientes, CRM e CX | Co-host do Debate no Café | Pai de gêmeos, o + importante
(已编辑)
举报内容
Os indicadores tradicionais como CSAT, NPS ou CES s?o importantes, principalmente para análises pontuais ou de processos durante uma vigência de contrato. Porém, entendo que o indicador mais importante a ser criado é o modelo de score de propens?o, baseado em critérios de comportamento do cliente durante a vigência do contrato, aliado a fatores externos, como por exemplo tendências de mercado ou de segmento. A utiliza??o deste score pode ser mais eficiente no contato individual com cada cliente, direcionando a melhor estratégia para a renova??o. Lembrando que estas estratégias s?o sempre implementadas ao longo do tempo no relacionamento com o cliente e n?o apenas no momento em que o contrato está para vencer.

已翻译

赞

Customer Relationship Management (CRM)

+ 关注

给文章评分

我们借助人工智能创建了此文章。您认为这篇文章怎么样？

很棒不太好

举报此文章

查看全部

What are the most important KPIs for your renewal process?

1

2

3

4

5

1 Renewal rate

2 Net retention rate

3 Customer satisfaction score

4 Customer effort score

5 Here’s what else to consider

Customer Relationship Management (CRM)

给文章评分

感谢您的反馈

更多Customer Relationship Management (CRM)相关文章

更多相关阅读内容

What are the most important KPIs for your renewal process?

1

2

3

4

5

1 Renewal rate

2 Net retention rate

3 Customer satisfaction score

4 Customer effort score

5 Here’s what else to consider

Customer Relationship Management (CRM)

给文章评分

感谢您的反馈

查看其他技能