Ratio of the number of the organization's active clients retained from the start to the end of the reporting period.
Organizations should footnote all assumptions used.
This metric does not differentiate between new and rejoining clients. The relevance and interpretation of this metric relies heavily on the business model.
Organizations can refer to the following source for further guidance on calculating retention rate (specifically for microfinance): http://www.microfinancegateway.org/sites/default/files/mfg-en-paper-the-challenges-of-measuring-client-retention-2006_0.pdf
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 specific guidance document. 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.
Metrics identified as "cross-category" are those that are relevant to any IRIS+ Impact Category or Impact Theme (i.e., these metrics are not specific to any particular industry/category or theme).
April 2021 - IRIS v5.2 Released
No change.
December 2019 - IRIS v5.1 Released
No change.
April 2019 - IRIS v5.0 Released
No change.
February 2016 - IRIS v4.0 Released (current version)
Immaterial change. Minor revision to calculation language for clarity.
February 2014 - IRIS v3.0 Released
Immaterial change. Minor revision to definition language for clarity.
October 2011 - IRIS v2.2 Released
No change.
January 2011 - IRIS v2.1 Released
Material change. Client Retention Rate (PI9319) replaced Microfinance Dropout Rate (PI9282). Metric modified to maintain consistency with outside frameworks.
August 2010 - IRIS v2.0 Released
Immaterial change. Microfinance Dropout rate (PI9282) replaced Drop out rate (M11). IRIS ID / metric name changed due to framework upgrade. Minor revision to definition language for clarity.
August 2009 - IRIS v1.0 Released
New metric. Drop out rate (M11) developed via Original IRIS Working Group.
IRIS Metrics Work Better in Sets
To use IRIS metrics—and the resulting data—to understand impact performance, IRIS metrics should be used and analyzed in generally accepted sets and according to well-defined objectives. IRIS+ gives you access to generally accepted Core Metrics Sets aligned to common Impact Themes and Sustainable Development Goals (SDGs).