Track retention in OpenPay

Customer retention rateCopied!

The customer retention rate measures the percentage of customers that remain with the business over a given period, excluding any new sign-ups.

$\text{CRR} = \left( \frac{\text{Number of Customers at Period End} - \text{Number of New Customers Acquired During Period}}{\text{Number of Customers at Period Beginning}} \right) \times 100$

Let's say you begin the month with 100 customers and end the month with 100 customers. During the month, 10 signed up new.

• Customers at the beginning of the month: 100

• Customers at the end of the month: 100

• Customers signed up new: 10

$\text{Customer Retention Rate} = \left( \frac{(100 - 10)}{100} \right) \times 100 = 90\%$

Net MRR retention rateCopied!

$\text{Net MRR Retention Rate} = \left( \frac{\text{Beginning MRR} + \text{Expansion MRR} - \text{Contraction MRR} - \text{Churn MRR}}{\text{Beginning MRR}} \right) \times 100$

Let's say at the beginning of the month you have $500 in MRR. During the month, one customer upgrades resulting in a $25 increase in MRR, one customer churns resulting in a $50 decrease in MRR, and one customer downgrades resulting in a $10 decrease in MRR.

• Beginning MRR: $500

• Expanded MRR: $25

• Contracted MRR: $10

• Churned MRR: $50

$\text{Net MRR Retention Rate} = \left( \frac{(500 + 25 - 10 - 50)}{500} \right) \times 100 = 93\%$