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Customer Retention Strategies
Terms
- What is a renewal rate?
- Renewal rate measures the percentage of customers who renew their contracts or subscriptions. It reflects customer loyalty and satisfaction. Simple example: 80 out of 100 customers renew = 80% renewal rate.
- What is net dollar retention?
- Net Dollar Retention (NDR) measures how much revenue you retain and grow from existing customers over time. Above 100% means you're growing revenue even with some churn. Top SaaS companies target 110%+ NDR.
- What is revenue churn?
- Revenue churn measures the percentage of recurring revenue lost from existing customers through cancellations and downgrades. Unlike customer churn, it focuses on dollar impact, making high-value customer losses more visible.