Life Cycle Renewal Rate
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The Life Cycle Renewal Rate Curve is the plot of the renewal rates throughout the customer contract life cycle for a like group of contracts.
Most frequently, the like group is a “class of” group, meaning sold in the same time period or in the same relative term. A typical and simple example of this curve or plot is:
Clients entering term #2, 85% renewal rate
Clients entering term #3, 97% renewal rate
Clients entering term #4, 97% renewal rate
This approach to analysis is significantly more accurate and powerful than using simple churn or renewal rates.
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