Customer retention metrics framework

Measuring customer retention is about more than just counting how many folks stick around – it’s about understanding why they stay, why they leave, and what you can do about it.

This customer retention metrics framework gives you a clean, easy-to-use breakdown of the most important metrics you need to keep your churn in check and your customers coming back for more.

What is a customer retention metrics framework?

This framework is a quick-reference guide to the most valuable metrics for measuring customer retention and satisfaction. It outlines each metric’s purpose, gives you the formulas to calculate them, and helps you decide which are most relevant based on your business model.

Inside, you’ll find key retention-focused metrics like:

• Customer retention rate
• Churn rate
• Revenue churn rate
• Repeat purchase rate
• Net Promoter Score (NPS)
• Customer satisfaction score (CSAT)
• Customer engagement score (CES)
• Customer retention cost (CRC)

It’s basically your go-to cheat sheet for keeping a pulse on how loyal and engaged your customers are.

Who is it for?

This framework is built for product marketers, customer success managers, and growth teams who need to:

• Prove the ROI of their retention strategies
• Uncover opportunities to reduce churn
• Align cross-functional teams around customer health
• Report clearly on retention in team meetings, board decks, or performance reviews

Whether you're working at a SaaS startup, scaling DTC brand, or a massive enterprise – if customer retention is on your radar, this framework belongs in your toolkit.

How to use the framework

You can plug in your own numbers straight into the formulas or use it as a reference guide alongside your analytics tools.

Here’s how most folks get value from it:

1. Pick your key metrics: Depending on your business model, some metrics (like revenue churn) may be more critical than others (like repeat purchase rate).
2. Gather your data: Pull numbers from your CRM, product analytics, billing system, or survey tools.
3. Plug and play: Use the formulas provided to calculate each metric. Everything is clearly laid out for quick wins.
4. Spot trends and gaps: Identify where you’re winning, where you’re leaking revenue, and where to double down.

It’s also a great resource to share with teammates so everyone’s speaking the same retention language.

Get your customer retention metrics framework

Customer retention metrics

Customer retention metrics Here’s a list of essential metrics for you to track your customer retention performance. It’s essential that you have a clear understanding of their definitions, so you’d know which ones to use for your specific case and why you track them in the first place. Metr…

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