< Back to Glossary

Gross Retention

Gross retention refers to the percentage of a company's customers or clients that remain with the company over a specific period of time. This metric is often used to measure the effectiveness of a company's customer retention efforts and to identify areas for improvement.

For example, let's say a company has 100 customers at the beginning of the year. After one year, the company has retained 80 of those customers. This means the company's gross retention rate is 80%, as 80 out of the original 100 customers have remained with the company.

Gross retention can be a useful metric for companies to track, as it can provide insight into the overall health and sustainability of the business. A high gross retention rate may indicate that the company is providing high-quality products or services, has strong customer relationships, and is effectively retaining its customer base. On the other hand, a low gross retention rate may indicate that the company is losing customers at an unsustainable rate and may need to improve its customer retention efforts.

Revolutionize Your Accounting with Finanshels
Book Free Consultation
Bader Al Kazemiquote
"If you ever do any financial modeling/forecasting, I seriously can't recommend Finanshels enough. they are a dependable team of professionals who work hard to deliver results."
Bader Al Kazemi
Founder, Optimize App
Restaurants Accounting
The Restaurant Business An Accounting Guide

The Restaurant Business An Accounting Guide

Get Free Guide