What metrics can you track to measure account retention?

1 Customer retention rate

Customer retention rate (CRR) is the percentage of customers that you keep over a given period, excluding new acquisitions. It shows how effective you are at maintaining your customer base and preventing churn. To calculate CRR, use this formula: CRR = (E-N)/S x 100, where E is the number of customers at the end of the period, N is the number of new customers acquired during the period, and S is the number of customers at the start of the period. For example, if you have 100 customers at the beginning of the year, acquire 20 new customers, and lose 10 customers by the end of the year, your CRR is (110-20)/100 x 100 = 90%. A high CRR indicates that you have a loyal and satisfied customer base, while a low CRR suggests that you need to improve your customer service, communication, and value proposition.

3 Net promoter score

Net promoter score (NPS) is a measure of customer loyalty and satisfaction based on how likely they are to recommend your products or services to others. It is calculated by asking customers to rate on a scale of 0 to 10 how likely they are to refer you to a friend or colleague, and then subtracting the percentage of detractors (those who rate you 0 to 6) from the percentage of promoters (those who rate you 9 or 10). For example, if you have 50% promoters, 30% passives (those who rate you 7 or 8), and 20% detractors, your NPS is 50% - 20% = 30%. A positive NPS indicates that you have more advocates than critics, while a negative NPS indicates that you have more dissatisfied than satisfied customers.

4 Customer feedback

Customer feedback is the qualitative information that you collect from your customers about their experience, satisfaction, preferences, and expectations. It can help you understand the reasons behind your account retention metrics and identify the strengths and weaknesses of your products, services, and interactions. You can gather customer feedback through various methods, such as surveys, interviews, reviews, testimonials, social media, and online forums. Customer feedback can help you improve your customer relationship, loyalty, and retention by providing you with insights, suggestions, compliments, and complaints.

5 Account growth

Account growth is the increase or decrease in the revenue that you generate from a customer over time. It reflects how well you are upselling, cross-selling, and renewing your products or services to your existing customers. To measure account growth, you can use this formula: Account growth = (Current revenue - Previous revenue) / Previous revenue x 100. For example, if you sold $5,000 worth of products to a customer last year, and $6,000 worth of products this year, your account growth is ($6,000 - $5,000) / $5,000 x 100 = 20%. A positive account growth indicates that you are expanding your customer value and share of wallet, while a negative account growth indicates that you are losing revenue and market share.

By tracking these metrics, you can measure your account retention performance and strategy in medical sales. You can also use them to set goals, benchmarks, and action plans to improve your account retention and grow your business.

6 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?