Draft reference — content review pending
Client Renewal Rate
The percentage of eligible client contracts reaching a renewal decision that are renewed.
Business question
What share of eligible contracts reaching renewal decision is renewed?
Formula
Client renewal rate = eligible client contracts renewed ÷ eligible contracts reaching renewal decision × 100.
Calculation notes
Define eligible contract, renewal decision date, extensions, automatic renewals, cancellations, and contracts excluded by planned completion or client choice.
Edge-case guidance
Do not count contracts still pending a decision. A higher rate can hide discounting or retention of unprofitable work.
Required data
| Input | Type | Status | Available source hints |
|---|---|---|---|
| Renewed eligible contractsEligible contracts recorded as renewed under the agreed decision rules. | Number | Required | CRM · Excel |
| Eligible contracts at renewal decisionEligible contracts reaching a final renewal decision during the cohort period. | Number | Required | CRM · Excel |
Interpretation
Use it to understand retention of eligible contracts. Define renewal eligibility and read the measure with scope, pricing, satisfaction, and client fit.
Caution
Renewal rate depends on eligibility and cohort rules; it does not explain why a client renews or whether the work is profitable.
Implementation recommendation
Record renewal decisions and reasons consistently, then review renewal with margin, scope, and client feedback.
Target guidance
Set a target from comparable renewal cohorts and balance retention with pricing discipline, fit, capacity, and profitable delivery.