This measure calculates the percentage of key customers (i.e. the top 20 percent of customers in terms of currency volume of sales) retained from the previous year. It is part of a set of Process Efficiency measures that help companies optimize the performance of their "develop marketing strategy" process by minimizing waste and refining resource consumption.
Key customer retention rate
Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.