Client Retention Rate (PI9319)

This metric is intended to capture the proportion of clients retained without differentiating between new and rejoining clients. The relevance and interpretation of this metric depends heavily on business model.

For further guidance on calculating retention rate, specifically in the context of microfinance, see Chuck Waterfield, “The Challenges of Measuring Client Retention (Technical Note #2)” (Putting Client Assessment to Work, SEEP Practitioner Learning Program, The SEEP Network, 2006) (https://seepnetwork.org/Resource-Post/The-Challenges-of-Measuring-Client-Retention).

In specific contexts, and based on evidence, this metric may serve as a proxy indicator of whether the outcome being sought by an investor or organization is occurring (the WHAT dimension of impact). For more on the alignment of IRIS metrics to the five dimensions of impact, see IRIS+ and the Five Dimensions of Impact (https://iris.thegiin.org/document/iris-and-the-five-dimensions/). No single metric is sufficient to understand an impact; rather, metrics are selected as a set across all dimensions of impact. When possible, the selection of metrics to measure and describe the five dimensions should be based on best practice and evidence.