How to Calculate Deal-Based Renewal Rate on a Cohort Basis

Deal-based renewal rate, calculated on a cohort basis, measures the percentage of opportunities renewed out of the total number that were up for renewal in a period.  To measure deal-based renewal rate on a cohort basis, you take your total number of expiring subscriptions in a period, and measure how many of them got renewed, and divide the number of renewals by the number of expirations.  

For example, if you had 400 deals up for renewal in Q2, and 350 of them were renewed, then your deal-based renewal rate on a cohort basis would be 350 / 400 = 87.5%.

To measure deal-based renewal rate on a cohort basis with Salesforce data,

first count the number of closed won opportunities that had a subscription end date in that period.  Then calculate how many renewal opportunities you won, from that set of expirations. Divide the number of renewals by the number of expiring opps to get your renewal rate.

To measure deal-based renewal rate on a cohort basis with HubSpot CRM data,

first count the number of closed won deals that had a subscription end date in that period.  Then calculate how many renewal opportunities you won, from that set of expirations. Divide the number of renewals by the number of expiring deals to get your renewal rate.

Rekener can calculate deal-based renewal rate automatically,

and can measure it by sales rep, by account, industry, or any other breakdown.  Check out our Customer Success Analytics app to see how Rekener calculates deal-based renewal rate automatically.

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Gregory Keshian

Greg is COO and Co-Founder at Rekener. Greg’s entire career has been focused on using BizOps to grow recurring revenue businesses. Before joining Rekener, he served as VP of Operations at ZeroTurnaround, where he built its BizOps practice and team. He did the same for the AVOKE call center analytics business, a SaaS company within BBN Technologies. He got his start in BizOps for recurring revenue businesses while at AppNeta.

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