Client Retention Rate (PI9319)

Ratio of the number of the organization's active clients retained from as of the end of the reporting period compared to the number of active clients with which the organization began the reporting period.

Calculation:

$\frac{{\href{/metric/4.0/PI9327}{\text{Client Individuals: Active (PI9327)}}}{\text{ at the end of the reporting period}-{\href{/metric/4.0/PI8732}{\text{Client Individuals: New (PI8732)}}}}}{\text{Active Client Individuals at the beginning of the reporting period}}$

Reporting Format Decimal
Metric Type Metric
Metric Level Product/Service, Organization
IRIS Metric Citation IRIS, 2021. Client Retention Rate (PI9319). v5.2.

Footnote

Organizations should footnote all assumptions used, including source of data.

Usage Guidance

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.

Impact Categories & Themes

Cross Category

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).

SDG Goals & Targets

Metric History

June 2025 - IRIS+ v5.3b Released (current version)

No change.
December 2024 - IRIS+ v5.3a Released

No change.
June 2022 - IRIS+ v5.3 Released

Immaterial change. Minor revisions to definition and usage guidance for clarity.
May 2021 - IRIS+ v5.2 Released

No change.
January 2020 - IRIS+ v5.1 Released

No change.
May 2019 - IRIS+ v5.0 Released

No change.
March 2016 - IRIS+ v4.0 Released

Immaterial change. Minor revision to calculation language for clarity.
March 2014 - IRIS+ v3.0 Released

Immaterial change. Minor revision to definition language for clarity.
November 2011 - IRIS+ v2.2 Released

No change.
February 2011 - IRIS+ v2.1 Released

Material change. Client Retention Rate (PI9319) replaced Microfinance Dropout Rate (PI9282). Metric modified to maintain consistency with outside frameworks.
September 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.
September 2009 - IRIS+ v1.0 Released

New metric. Drop out rate (M11) was developed via the Original IRIS Working Group.

Calculation:

Footnote

Cross Category

IRIS Metrics Work Better in Sets