Renewal rate

Calculate what percentage of customers renew subscriptions to measure product-market fit and customer success effectiveness at delivering ongoing value.

Renewal rate

Renewal rate

definition

Introduction

Why it matters

How to apply it

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Customer value

Acquiring customers is expensive. Keeping them is where margins improve. What would happen if none of your customers left? Build feedback loops, long-term relationships, retention programmes that reduce churn, and upsell frameworks that grow account value without being pushy.

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Customer value tools

Customer value tools

Acquiring customers is expensive. These tools help you keep them longer and grow their accounts so your acquisition costs actually pay off over time.

Calculate lifetime value

Calculate lifetime value

Revenue per customer determines how much you can spend to acquire them. Get this number wrong and every other growth decision is built on bad assumptions.

Retention strategy

Retention strategy

Churn kills growth. Identifying at-risk accounts early and addressing concerns proactively keeps customers longer and makes your acquisition investment worthwhile.

Expansion

Expansion

New customers are expensive. Growing existing accounts is where margins improve and growth becomes sustainable without constantly feeding the acquisition machine.

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3

How to monitor customer health

Track engagement, usage, and sentiment to identify at-risk customers before they churn so you can intervene early with targeted outreach.

4

How to design renewal processes

Make renewing frictionless and proactive so customers don't have to think about it whilst you spot risks early enough to address them.

Wiki

Health score

Combine usage, engagement, and satisfaction signals into one metric that predicts churn risk so customer success teams prioritise accounts needing intervention.

Usage metrics

Track how customers interact with your product to identify power users, detect at-risk accounts, and guide feature development toward actually valuable capabilities.

Pricing strategy

Determine how to charge for products and communicate value to maximise willingness to pay whilst remaining competitive and supporting desired positioning.

Quote

Provide formal pricing for requested solutions to move qualified prospects toward purchase decisions with clear costs and terms they can review and approve.

Sales methodology

Follow structured selling frameworks that provide consistent processes for qualifying, demonstrating value, and advancing opportunities through each pipeline stage.

Customer success

Proactively help customers achieve desired outcomes to drive retention and expansion by ensuring they extract maximum value from your solution.

Sales deck

Design presentation slides that guide discovery and demo conversations whilst reinforcing key messages visually so prospects retain information after meetings end.

Avg. Unit price

The average price charged per unit, seat, or item sold.

Renewal rate

Calculate what percentage of customers renew subscriptions to measure product-market fit and customer success effectiveness at delivering ongoing value.

Customer satisfaction (CSAT)

Survey customers about satisfaction with specific interactions or products to catch problems early and identify what drives positive experiences worth replicating.

Net Promoter Score (NPS)

Measure customer loyalty by asking how likely they'd recommend you to gauge satisfaction and identify promoters who drive referrals versus detractors risking churn.

Units per invoice

The average number of units, seats, or items included on each invoice.

Battle card

Arm sales reps with competitive intelligence on one-page sheets covering competitor strengths, weaknesses, and effective counter-positioning for common objections.

Invoices / contract

The average number of invoices issued per customer contract, reflecting contract length and billing frequency.

Testimonial

Collect specific customer quotes about results achieved to provide social proof that overcomes scepticism more effectively than marketing claims buyers discount.

One-pager

Create single-page summaries of solutions or case studies that busy decision-makers can quickly scan to understand value without reading long documents.

Lifetime Value (LTV)

Calculate the total revenue a customer relationship generates over its entire duration to guide acquisition spending and retention priorities.