Customers At The Start
Of a month, quarter, or year
Customers Lost
During that month, quarter or year
New Customers Acquired
During that month, quarter, or year
Your Gross Renewal Rate =
This rate focuses purely on retention and doesn't take into account any new customer acquisitions.
Your Net Renewal Rate =
When Net Renewal Rate is higher than Gross Renewal Rate, this indicates that new customer acquisition is outpacing churn. The business is not only replacing lost customers but also growing its overall customer base. When Net Renewal Rate is lower than Gross Renewal Rate, this suggests that while the business is retaining a good portion of its existing customers, it's not acquiring enough new ones to offset churn and drive growth.
Learn how to improve your renewal rates