TL;DR: Key SaaS Retention Metrics

No time to read the full guide? Here’s the short version.

Customer retention drives sustainable SaaS growth.
Tracking the right retention KPIs helps your team keep users active, loyal, and engaged.

Top 10 Customer Retention KPIs

• Customer Retention Rate (CRR): Percentage of customers who stay over time.
• Monthly Recurring Revenue (MRR): Predictable monthly subscription income.
• Customer Lifetime Value (CLV): Total revenue per customer across their lifecycle.
• Product Stickiness (DAU/MAU): How often users return to your product.
• Repeat Purchase Rate (RPR): Share of customers who renew or upgrade.
• Expansion MRR: Revenue from upsells and cross-sells.
• Customer Satisfaction Score (CSAT): Direct feedback on user satisfaction.
• Net Promoter Score (NPS): Likelihood that customers recommend your product.
• Customer Health Score: Early indicator of churn risk and product fit.
• Revenue Churn Rate: Percent of recurring revenue lost over time.

Quick Ways to Improve Retention

• Personalize onboarding and guide new users toward value.
• Track usage and engagement trends.
• Act on feedback from CSAT and NPS surveys.
• Educate users through tutorials and webinars.
• Build loyalty programs and user communities.
• Use a no-code onboarding platform like Userflow to deliver in-app guides, surveys, and retention analytics.

Retention is not a single project — it’s an ongoing strategy for long-term SaaS growth.

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How to Build a Bank of Loyal Customers

Customer retention is the foundation of sustainable SaaS growth. Keeping existing users engaged and happy is far more cost-effective than acquiring new ones. That’s why the most successful product-led companies focus as much on retention as they do on acquisition.

But how can you measure and improve retention? The answer lies in customer retention KPIs, key performance indicators that reveal how effectively your product keeps users active over time.

In this guide, you’ll learn what retention KPIs are, why they matter, and how to use them to improve customer loyalty and reduce churn. We’ll explore the top metrics every product manager, growth marketer, and customer success professional should track, including Customer Retention Rate (CRR), Customer Lifetime Value (CLV), and Net Promoter Score (NPS).

You’ll also see how Userflow, a no-code onboarding platform, helps SaaS teams track these KPIs, automate in-app engagement, and drive long-term retention through better onboarding and product education.

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What are Customer Retention KPIs?

Customer Retention KPIs are measurable metrics that show how effectively a business keeps its customers over time.
In SaaS, these KPIs track user engagement, satisfaction, and loyalty — helping teams understand which parts of their product experience drive long-term success.

Each KPI provides a data point that turns customer behavior into actionable insight. By monitoring these numbers, SaaS companies can see what’s working, spot churn risks early, and strengthen their retention strategy.

Why Retention KPIs Matter

• Identify areas where your product or onboarding process can improve.
• Detect early warning signs of rising customer churn rates.
• Measure the effectiveness of your retention and engagement initiatives.
• Enable more accurate revenue forecasting and business planning.

When you know what your users value, you know how to keep them.
Tracking retention KPIs gives you the roadmap to reduce churn, grow recurring revenue, and build loyalty that lasts.

Next, let’s look at the ten most important customer retention metrics every SaaS team should measure and how tools like Userflow can help track and improve them.

10  Customer Retention KPIs and Metrics

1. Customer Retention Rate (CRR)

Definition:

Customer Retention Rate (CRR) is the most fundamental KPI for measuring customer retention in SaaS. It shows the percentage of customers who stay with your business over a specific time period. If you only track one retention metric, make it CRR — it’s the clearest signal of loyalty and satisfaction.

Customer Retention Rate Formula:‍

CRR = ((C1 − ΔC) / C0) × 100

• C0 = Number of customers at the start of the period
• C1 = Number of customers at the end of the period
• ΔC = Number of new customers acquired during the period

Why Customer Retention Rate is Important:‍

Customer Retention Rate provides a direct view of how well your product keeps users engaged and satisfied. A high CRR means users continue to find value in your product, signaling strong customer loyalty and product-market fit.

How to Improve CRR:

• Use a no-code onboarding platform like Userflow to create personalized, guided onboarding flows that help users find value faster.
• Engage customers regularly with contextual in-app messages and emails.
• Collect feedback through CSAT or NPS surveys and act quickly on what you learn.
• Continuously improve your product experience based on user behavior data.
• Provide proactive, high-quality customer support to reduce early churn.

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2. Monthly Recurring Revenue (MRR)

Definition:‍

Monthly Recurring Revenue (MRR) is a key financial KPI for subscription-based SaaS businesses. It measures the predictable monthly income generated from active customers. MRR reflects both customer retention and business growth, since it accounts for new, existing, and expanded revenue streams.

MRR Formula:‍

MRR = Number of Customers × Average Revenue per Customer

Why MRR is Important:‍

Monthly Recurring Revenue gives SaaS teams a clear view of financial stability and retention health. When MRR grows consistently, it means users are staying longer, upgrading plans, or purchasing add-ons, which are all signs of strong customer loyalty and product value.

How to Improve MRR:

• Use Userflow’s no-code onboarding tools to guide users toward feature discovery and faster activation.
• Focus on upselling and cross-selling to existing customers based on product usage insights.
• Offer tiered pricing that matches different customer segments and growth stages.
• Reduce churn by improving product experience and addressing user pain points early.
• Use in-app surveys and behavior tracking to identify expansion opportunities.

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3. Customer Lifetime Value (CLV)

Definition:‍

Customer Lifetime Value (CLV) measures the total revenue a SaaS business can expect to earn from a single customer account over the entire duration of their relationship. It reflects how effectively your product retains users and generates recurring value.

CLV Formula:‍

CLV = Average Purchase Value × Average Purchase Frequency × Average Customer Lifespan

Why CLV is Important:‍

Customer Lifetime Value reveals the long-term financial impact of retention. A high CLV indicates strong customer loyalty, low churn, and sustained engagement, all of which are key signs of a healthy product-led growth strategy. It also helps SaaS teams decide how much to invest in customer acquisition and onboarding, balancing short-term costs with long-term gains.

How to Improve CLV:

• Use Userflow’s onboarding flows to help users experience product value earlier in their journey.
• Boost engagement with personalized in-app experiences and contextual messages.
• Offer loyalty programs or rewards for long-term customers.
• Continuously deliver new features and improvements that keep users returning.
• Provide proactive, exceptional customer support to strengthen relationships.

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4. Product Stickiness

Definition:‍

Product Stickiness measures how often users return and engage with your SaaS product. It’s calculated using the ratio of Daily Active Users (DAU) to Monthly Active Users (MAU), showing how frequently users interact with your app.

Product Stickiness Formula:‍

Product Stickiness = DAU ÷ MAU

Why Product Stickiness is Important:‍

A high stickiness ratio means your product delivers consistent value that keeps users coming back. Sticky products have lower churn, higher adoption rates, and stronger long-term retention, all of them critical for product-led growth. In SaaS, Product Stickiness directly reflects user engagement and feature adoption.

How to Improve Product Stickiness:

• Use Userflow’s in-app guides and tooltips to highlight your product’s most engaging features.
• Lead users to key “aha moments” through contextual onboarding experiences.
• Add gamification elements like badges or progress indicators to encourage regular use.
• Track feature adoption data and continuously optimize based on engagement trends.
• Trigger in-app prompts or checklists to re-engage inactive users.

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5. Repeat Purchase Rate (RPR)

Definition:‍

Repeat Purchase Rate (RPR) measures the percentage of customers who renew, repurchase, or upgrade their subscriptions. While often used in e-commerce, RPR is also a valuable KPI for SaaS businesses because it tracks renewal behavior and upgrade frequency, both strong indicators of user satisfaction and loyalty.

RPR Formula:‍

RPR = Number of Repeat Customers ÷ Total Number of Customers

Why RPR is Important:‍

A high Repeat Purchase Rate signals that customers are not only satisfied but continue to see value in your product. For SaaS teams, it reflects healthy renewal cycles and consistent engagement across the customer lifecycle.

How to Improve RPR:

• Use Userflow’s no-code onboarding flows to ensure new users see value quickly, reducing early churn and improving renewal likelihood.
• Provide proactive, high-quality customer support to resolve issues before renewal time.
• Regularly release new features and communicate them through in-app messages or tooltips.
• Offer incentives for upgrades or long-term commitments, such as discounts or loyalty perks.
• Monitor customer engagement metrics to identify users at risk of non-renewal.

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6. Expansion MRR

Definition:‍

Expansion Monthly Recurring Revenue (Expansion MRR) measures the additional recurring revenue generated from existing customers. It includes revenue from upsells, cross-sells, and plan upgrades, minus any downgrades. For SaaS companies, Expansion MRR highlights how well you retain and grow value within your existing customer base.

MRR Formula:‍

Expansion MRR = (MRR from Upgrades + MRR from Cross-Sells) − MRR from Downgrades‍

Why MRR is Important:‍

Expansion MRR is a direct indicator of customer satisfaction and expansion potential. A growing Expansion MRR shows that customers continue to find value in your product and are willing to invest more in advanced features or higher tiers. It’s a core metric for SaaS businesses focused on product-led growth (PLG) and long-term retention.

How to Improve Expansion MRR:

• Use Userflow’s in-app guidance and segmentation to highlight premium or underused features to the right users.
• Identify upsell opportunities based on usage behavior and engagement data.
• Design clear upgrade paths that show tangible benefits of moving to higher plans.
• Educate customers on advanced features through onboarding flows, tutorials, and webinars.
• Offer time-sensitive promotions or add-on discounts to encourage timely upgrades.

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7. Customer Satisfaction Score (CSAT)

Definition:‍

Customer Satisfaction Score (CSAT) measures how happy customers are with your product or service. It’s typically calculated from post-interaction or post-onboarding surveys where users rate their satisfaction on a scale from 1–5 or 1–10.

CSAT Formula:‍

CSAT = (Number of Satisfied Customers ÷ Total Number of Survey Responses) × 100

Why CSAT is Important:‍

CSAT provides direct, real-time feedback on how users feel about your product experience. Monitoring CSAT helps SaaS teams identify pain points early and resolve them before churn increases. High CSAT scores signal strong product usability, reliable support, and overall customer trust — key drivers of retention.

How to Improve CSAT:

• Use Userflow’s in-app survey builder to collect feedback at the exact moment users interact with your product.
• Respond quickly to customer issues and close the loop with visible improvements.
• Continuously refine onboarding flows and product experiences based on survey insights.
• Keep educating users through tutorials, webinars, and help-center content.
• Maintain responsive, round-the-clock customer support to strengthen satisfaction and loyalty.

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8. Net Promoter Score (NPS)

Definition:‍

Net Promoter Score (NPS) measures customer loyalty by asking one key question: “How likely are you to recommend our product or service to others?”‍

Customers respond on a scale from 0 to 10, revealing how willing they are to advocate for your product.

NPS Formula:‍

NPS = % of Promoters − % of Detractors

• Promoters: Customers who rate 9–10
• Passives: Customers who rate 7–8
• Detractors: Customers who rate 0–6

Why NPS is Important:‍

NPS is a simple but powerful metric for predicting retention and word-of-mouth growth.
A high NPS means customers are satisfied and enthusiastic — they’re likely to renew, upgrade, and refer new users.
For SaaS businesses, NPS helps quantify loyalty and identify both advocates and at-risk users.

How to Improve NPS:

• Use Userflow’s in-app NPS surveys to gather real-time feedback directly inside your product.
• Follow up with detractors quickly to understand their concerns and resolve pain points.
• Highlight positive feedback and case studies from promoters in your marketing.
• Continuously improve onboarding and product experiences based on NPS insights.
• Launch a referral program to encourage promoters to share your product with others.

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9. Customer Health Score

Definition:‍

The Customer Health Score is a composite metric that combines multiple indicators to predict whether a customer will stay active or churn. It helps SaaS teams understand overall customer well-being by turning behavioral and satisfaction data into a single, trackable number.

Customer Health Score Formula (Example Factors):‍

There’s no universal formula for Customer Health Score, but it typically includes weighted components such as:

• Product usage frequency and recency
• Feature adoption rates
• Customer support ticket volume and resolution speed
• NPS or CSAT feedback scores
• Payment consistency and renewal history

Why Customer Health Score is Important:‍

Customer Health Scores help SaaS teams identify at-risk accounts before they churn. By monitoring these scores, customer success managers can intervene early and focus retention efforts where they matter most. High health scores signal engaged, satisfied users who are likely to renew or expand their plans.

How to Improve Customer Health Scores:

• Use Userflow’s behavioral tracking and segmentation to analyze feature adoption and engagement patterns.
• Build a clear scoring system based on key success indicators specific to your product.
• Automate alerts to notify customer success teams when scores drop below thresholds.
• Create targeted in-app interventions or guided flows for low-score users.
• Review and adjust scoring models regularly to reflect product and user behavior changes.

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10. Revenue Churn Rate

Definition:‍

Revenue Churn Rate measures the percentage of recurring revenue lost over a given time period due to customer cancellations or downgrades. In SaaS, it shows how churn directly impacts your Monthly Recurring Revenue (MRR) and overall growth.

Revenue Churn Rate Formula:‍

Revenue Churn Rate = (MRR at Start of Period − MRR at End of Period) ÷ MRR at Start of Period

Why Revenue Churn Rate is Important:‍

Revenue Churn Rate provides a clear view of the financial effects of customer churn. High revenue churn signals retention issues, pricing misalignment, or unmet customer needs. By tracking this KPI, SaaS teams can pinpoint where revenue is slipping, whether by segment, tier, or product line, and take corrective action early.

How to Reduce Revenue Churn Rate:

• Use Userflow’s onboarding and retention analytics to detect friction points that lead to cancellations.
• Launch a proactive customer success program to engage users before renewal dates.
• Offer incentives for longer subscription terms, such as discounts or loyalty rewards.
• Regularly communicate your product’s value through in-app messaging, email, and social channels.
• Address user concerns quickly with accessible support and clear guidance flows.

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Tip: You don’t need to remember every rate formula by heart — just bookmark this article and refer back to the list whenever you need. 

How to Measure Customer Retention

Once you understand the key customer retention KPIs, the next step is setting up a consistent process for measuring and improving them. In SaaS, accurate retention measurement helps teams identify churn patterns, optimize onboarding, and guide long-term growth strategies.

So, here’s how to measure customer retention effectively:

1. Define Your Time Period‍

Decide how frequently you’ll measure retention — monthly, quarterly, or annually. Shorter timeframes help spot early churn trends, while longer ones show overall business health.

2. Choose the Right KPIs‍

Select metrics that match your product model and growth stage. For SaaS, this often includes Customer Retention Rate (CRR), Monthly Recurring Revenue (MRR), and Customer Lifetime Value (CLV).

3. Set Up Tracking Tools‍

Use a no-code analytics and onboarding platform like Userflow to track customer behavior, flow completion, and feature adoption. Integrate with CRMs or product analytics tools to centralize data collection.

4. Establish Benchmarks‍

Research industry standards and set measurable goals using the SMART method. Benchmarks help you gauge whether your retention efforts are improving over time.

5. Review and Analyze Regularly‍

Create a reporting cadence — monthly or quarterly — to review key metrics and detect retention shifts. Visualize trends over time to see the impact of onboarding, support, and feature updates.

6. Segment Your Data‍

Break down retention rates by user persona, pricing tier, or customer type. Segmentation reveals which groups are thriving and which need extra support.

7. Act on Insights‍

Turn retention data into strategy. Use findings to refine onboarding flows, improve support, or launch in-app guides that help users reach value faster. Platforms like Userflow make it easy to implement these improvements directly in your product.

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Strategies to Improve Your Customer Retention Rate

Now that you know how to measure retention KPIs, it’s time to put those insights into action. Improving customer retention in SaaS requires ongoing engagement, education, and proactive communication. Here are proven strategies to strengthen your retention rate and reduce churn:

1. Personalize Onboarding‍

Design onboarding experiences that match user roles, goals, and behaviors. Use a no-code onboarding platform like Userflow to build interactive guides, checklists, and tooltips that help new users find value faster. Personalized onboarding leads to quicker activation and higher long-term retention.

2. Use In-App Messaging and Email Campaigns‍

Communicate with users at key moments in their journey. Trigger in-app notifications, banners, or follow-up emails that introduce new features, share tips, or celebrate milestones. Tools like Userflow make it easy to automate contextual in-app messages.

3. Deliver Top-Notch Customer Service

Respond to user inquiries quickly and personally. Go beyond reactive support by reaching out to customers who appear stuck or disengaged. Proactive service builds trust and lowers churn risk.

4. Collect and Act on Feedback‍

Use CSAT or NPS surveys to capture customer sentiment directly within your product. Analyze results to identify common pain points, then update your product experience accordingly. In-app surveys built with Userflow help you collect feedback at the exact moment it matters most.

5. Continuously Update and Improve Your Product‍

Regularly release new features or performance improvements based on usage data and market research. Announce these updates in-app or via email to show users you’re listening to their needs.

6. Build a Customer Loyalty Program‍

Reward long-term customers with exclusive benefits such as feature previews, discounts, or custom pricing. Loyalty incentives help reinforce retention and strengthen brand advocacy.

7. Provide Educational Resources‍

Offer webinars, tutorials, and documentation to help users master your product. Knowledge builds confidence — and confident users are more likely to stay.

8. Foster a User Community‍

Create forums, user groups, or virtual events where customers can share feedback and best practices. Communities turn customers into advocates and extend product engagement beyond individual usage.

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How Userflow Can Boost Your Customer Retention Rate

Userflow is a no-code onboarding and in-app engagement platform built to help SaaS teams improve customer retention, adoption, and satisfaction. From the first user login to long-term engagement, Userflow gives you the tools to guide users, collect feedback, and analyze retention KPIs — all without writing a single line of code.

Here’s how Userflow helps SaaS companies track and boost retention:

1. Interactive Onboarding‍

Build personalized onboarding experiences using step-by-step guides, tooltips, and checklists. Interactive onboarding helps users reach “aha moments” faster, increasing activation and reducing time to value.

2. User Segmentation‍

Target specific user groups with tailored in-app messages and onboarding flows. Segment users by role, behavior, or lifecycle stage to deliver more relevant experiences that drive retention.

3. Product Usage Tracking‍

Monitor how users interact with your product directly inside Userflow. Identify which features are driving engagement and where friction may cause churn.

4. NPS and CSAT Surveys‍

Launch in-app surveys to gather customer satisfaction data without leaving your product. Userflow’s built-in survey tools help you measure loyalty, spot issues early, and take action fast.

5. Feature Adoption Tracking‍

Track feature usage trends and build targeted in-app prompts to highlight underused features. By reinforcing product value, you boost both adoption and renewal rates.

6. Analytics and Reporting‍

Access real-time analytics on flow completion rates, engagement metrics, and retention KPIs. Use this data to refine onboarding flows and improve long-term customer success.

7. Integrations with Your Stack‍

Connect Userflow with existing tools like Segment, Intercom, or Salesforce to centralize customer insights. A unified data view ensures your entire team — from product to marketing — can act on accurate retention metrics.

With Userflow, you can take a data-driven approach to mastering customer retention KPIs and improving user experiences from day one.

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FAQs on Customer Retention KPIs

Q1: How often should I measure retention KPIs and metrics?‍

Most SaaS companies should review core retention KPIs — such as Customer Retention Rate (CRR) and Monthly Recurring Revenue (MRR) — at least monthly. Behavioral metrics like product usage and feature adoption are best monitored weekly or even daily through analytics tools like Userflow.

Q2: What’s a good customer retention rate?‍

Retention benchmarks vary by industry. For SaaS companies, a 12-month retention rate between 35–45% is solid performance. Anything above 50% typically indicates excellent customer engagement and strong product-market fit.

Q3: How do I know which retention KPIs matter most for my business?‍

It depends on your growth stage. Early-stage startups should focus on Product Stickiness and Activation Metrics, while mature SaaS companies often emphasize Customer Lifetime Value (CLV) and Net Promoter Score (NPS). Platforms like Userflow can help track all of these KPIs in one place.

Q4: Can improving retention KPIs impact customer acquisition?

Yes. High retention improves acquisition efficiency. Happy, engaged customers are more likely to refer others, creating a self-reinforcing growth loop. Improving onboarding and in-app engagement with Userflow can strengthen this referral effect.

Q5: How do I balance focus between retention and acquisition?‍

Both are essential for long-term SaaS growth. Many successful companies follow the 40/40/20 rule:

• 40% of resources on acquisition
• 40% on retention
• 20% on brand building

The right mix depends on your company’s maturity, revenue model, and churn profile.

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The Last Word on Customer Retention KPIs

Convinced on the importance of customer retention KPIs? By focusing on key metrics like Customer Retention Rate, Monthly Recurring Revenue, Net Promoter Score, and Customer Lifetime Value, you gain valuable insights into user behavior, so you know exactly what steps to take to reduce customer churn rate.

Remember, improving retention is not a one-and-done deal — it’s an ongoing process that requires continuous monitoring, analysis, and optimization. That’s why it’s a good idea to have a tool like Userflow on hand, so you can streamline the process and create tailored experiences that keep your customers coming back for more.

Ready to send your customer retention rate skyrocketing? Sign up for a free trial of Userflow today and see how our comprehensive suite of tools can help you track, analyze, and improve your retention KPIs. Your future self (and your customers) will thank you!