SaaSology - Words you want to know

What is Renewal Rate?

A statistic known as the renewal rate calculates the proportion of users who decide to keep using a good or service after their initial subscription period has finished. It is frequently used to evaluate a product or service's performance over time and pinpoint areas for development.

The number of customers or subscribers who renew their subscriptions is divided by the total number of customers or subscribers eligible to renew to determine the renewal rate. While a low renewal rate can suggest that customers are not finding value in the product or service and may be exploring alternatives, a high renewal rate indicates that customers are content with the product or service and are likely to keep using it.