Measuring and tracking customer retention
Having explored the vital role of customer feedback in enhancing retention, we’ll now shift our focus to the essential aspect of measuring and tracking customer retention. In this section, we’ll delve into key metrics, goal-setting practices, and data-driven strategies that growth product managers can employ to quantify and improve retention within a PLG framework.
Key customer retention metrics
To effectively measure customer retention, growth product managers must rely on a set of key metrics that provide insights into user behavior and satisfaction over time. Here are some crucial retention metrics:
- Customer retention rate (CRR)
- Churn rate
- Net promoter score (NPS)
- Customer lifetime value (CLV)
CRR
CRR measures the percentage of customers retained over a specific period. It is calculated by dividing the number of customers at the end of a period by the number at the start and multiplying by...
