Retention KPIs: How to Measure and Improve Customer Retention

In 2025, businesses are waking up to a simple truth: keeping customers is smarter than chasing new ones. Why? Because loyal customers spend 67% more than new ones . You know what? Acquiring a new customer costs five times more than retaining an existing one.

So, how do you keep your customers happy and coming back? With Questera, you can measure and enhance your customer retention KPIs like Churn Rate, Repeat Purchase Rate, Customer Lifetime Value (CLTV), Engagement Rate, and Expansion Revenue.

In this blog, we'll explore these KPIs and show you how Questera can help you turn them into your business's superpowers.

What Are Retention KPIs?

When we talk about retention KPIs, we’re really discussing the key numbers that show us how well we’re holding onto customers. After all, retaining customers is often more profitable than getting new ones, and knowing the right metrics can guide your next move. But what are these customer retention KPIs that can make or break your business?

Here are the key KPIs for customer retention:

• Churn Rate:

  This is the percentage of customers who stop using your product or service over a given period. A high churn rate is a red flag that something might be wrong, maybe the product isn't working as expected or the experience isn't up to par. Tracking this retention KPI helps you identify and fix issues quickly.

• Repeat Purchase Rate:

  This measures how many customers are returning after their initial purchase. A high repeat purchase rate indicates your customers are happy as well as trusting your brand. Effectively, your company is performing well with retention.

• Customer Lifetime Value (CLTV):

  CLTV is the total revenue expected from the customer for the length of time that customer is in a relationship with your company. The higher the CLTV, the more profitable your customers are, which allows you to justify acquisition costs.

• Engagement Rate:

  This refers to how often customers are engaging with your product, service or brand. Whether it is logging into your software application, following up Emails, or liking your posts on social media, an engaged customer is a loyal customer. If you can get your customers being an engaged customer base, you can be assured you are retaining your customers.

• Expansion Revenue:

  This is revenue collected from existing customers in the form of upsells, cross sells associated with additional purchases. This is a customer retention KPI as it indicates that existing customers see value in your company to spend more over time.

Tracking these retention KPIs is crucial because they give you the insights you need to understand customer behavior and identify areas for improvement. When you have a solid grasp on your customer retention KPIs, you’re better equipped to make smart decisions that reduce churn, increase customer satisfaction, and ultimately grow your business.

Questera’s Role in Tracking and Improving Retention

When we talk about customer retention KPIs, the real challenge is not just tracking the numbers but doing something about them. Most businesses know they should look at retention KPIs. They might even know a few names like churn rate and CLTV. But very few actually take the next step, which is building a real plan to improve those numbers. That is exactly where Questera comes in, ready to guide you at every step to build stronger, longer-lasting customer relationships.

Questera is not just another tool that throws graphs and charts at you. Questera is about making smarter moves every single day to improve the real health of your business. Let us walk through how Questera’s platform helps you track, understand, and actually move the needle on your most important KPI customer retention goals.

• ELMA:

  ELMA is all about keeping the conversation going. Instead of sending the same old boring emails to everyone, ELMA automates personalized email nurturing based on what users are doing. If someone signs up but never finishes setting up their account, ELMA can send a friendly reminder. If someone uses your product a lot, ELMA can suggest cool new features. This is how you keep people engaged and cut churn without lifting a finger.

• OMNIA:

  In today’s world, your customers are not just on email. They are scrolling on Instagram, checking LinkedIn, and browsing YouTube. OMNIA helps you create omnichannel retention campaigns that meet your customers wherever they are. No mixed signals, no broken promises. A single, clear voice across every channel. When people feel heard and valued, they stay longer, spend more, and tell their friends. That is how real loyalty starts.

• SEGA:

  You might have thousands of customers, but not all of them need the same thing at the same time. SEGA helps you use smart segmentation to figure out who is at risk of leaving, who needs a little nudge, and who is ready to upgrade. Instead of spraying the same message everywhere, you are speaking to the right people in the right way. That means lower churn and better numbers on your customer retention KPIs without guesswork.

• GIA:

  Data is great, but only if you know what to do with it. GIA provides data-driven insights that help you refine your strategies week after week. Maybe you find out that most churn happens after day 14. Maybe you realize that users who finish onboarding in the first three days stay for a year. GIA helps you see these patterns fast and take action before small problems turn into big ones.

How Questera Improves Key Retention KPIs

Now, let us talk about what really matters: how Questera helps you improve key retention KPIs.

Lower Churn Rate

With Questera, you are not waiting for customers to disappear before doing something about it. ELMA sends timely nudges. OMNIA brings them back through ads and posts. SEGA flags users who might need extra attention. Together, they turn what used to be a guessing game into a smart, proactive system that keeps customers happy and engaged. When you know how to measure retention rates properly and take quick action, you win.

Higher Customer Lifetime Value (CLTV)

Questera focuses not just on keeping customers around, but helping them get more value over time. Personalized journeys, smart upsells, relevant offers- all these small moves stack up into long term relationships. Instead of a customer buying once and leaving, they buy again and again, building their lifetime value. And the best part is, this is all automated in a way that feels personal, not robotic.

Better Engagement

Engagement is one of the most important customer retention KPIs because it shows real interest. If your users are opening your emails, clicking on your posts, trying new features, that means they care. ELMA and OMNIA work behind the scenes to make sure your content is not just noise. They send messages based on user behavior, preferences, and needs. You are not just throwing out promotions and hoping something sticks. You are actually connecting.

Expansion Revenue

One thing a lot of companies miss is that your best sales are often to people who already know and love you. Questera helps you spot upsell and cross-sell opportunities through smart segmentation. SEGA can show you which customers are ready for a premium plan. ELMA can suggest add-ons based on past behavior. GIA can highlight which upgrades bring the best returns. Growing your revenue becomes part of your retention strategy, not a separate thing.

At the end of the day, tracking KPI customer retention is important. But improving them? That is where the real magic happens. Questera helps businesses not just see their retention KPIs, but actually act on them in smart, friendly, and human ways. You are not left guessing which button to press or which users to call. You have a full team- ELMA, OMNIA, SEGA, and GIA, working behind the scenes to make sure you are always moving forward.

If you are serious about how to measure retention rates and grow sustainably, Questera is the partner you have been waiting for.

Conclusion: Retention Isn’t Just About Keeping Customers, It’s About Growing With Them

At the end of the day, retention KPIs are not just numbers on a dashboard. They are signs that tell you whether your business is growing in the right way. When you keep an eye on every KPI customer retention and treat your customers right, you build something that lasts. Tracking customer retention KPIs like churn rate, engagement, and lifetime value shows you where you stand. But improving them is where the real work happens.

That is why Questera stands out. It is not just about counting the numbers. It is about helping you improve them with smart lifecycle execution. With tools like ELMA, OMNIA, SEGA, and GIA, Questera helps you not just track, but really grow your customer relationships. If you want to know how to measure retention rates and actually make them better, Questera has your back. Growth is not about rushing. It is about moving smart and steady.

FAQs

1. What are the most important retention KPIs to track?

The key retention KPIs every business should watch closely are Churn Rate, Repeat Purchase Rate, Customer Lifetime Value (CLTV), Engagement Rate, and Expansion Revenue. These KPIs give you a clear view of how happy and loyal your customers really are.

2. How do I calculate customer retention rate?

Customer Retention Rate = ((Number of Customers at End of Period - Number of New Customers Acquired During Period) ÷ Number of Customers at Start of Period) × 100.

It might sound tricky, but once you plug in the numbers, it is pretty straightforward.

3. Why is tracking churn rate so important?

Churn Rate shows you how many customers are leaving your business. If you notice a high churn rate, it is a big clue that something needs fixing fast, whether it is your product, your service, or your communication.

4. How can Questera help lower my churn rate?

Questera helps by acting before it is too late. ELMA sends smart, personalized emails. OMNIA creates seamless, omnichannel experiences. SEGA identifies users at risk. GIA gives you insights early on so you can act fast and keep customers happy.

5. What’s the best way to improve Customer Lifetime Value (CLTV)?

Focus on building real relationships. Use personalized emails, targeted offers, loyalty rewards, and great service. Questera helps you do all of this automatically but in a way that feels truly personal to every customer.

6. How often should I check my retention KPIs?

It is a good idea to check your retention KPIs every month. Some businesses even monitor them weekly. The more often you review them, the faster you can spot trends and make smarter moves.

7. Can retention KPIs help my marketing strategy too?

Absolutely. Knowing what keeps your customers happy helps you shape better marketing campaigns. It is not just about getting new customers. It is about keeping the ones you already have, and getting them to love you even more.

8. What makes Questera different from other retention tools?

Questera is not just about giving you data. It is about helping you act on that data with smart tools like ELMA, OMNIA, SEGA, and GIA. You are not guessing anymore. You are making real moves that actually improve your customer retention KPIs.