Customer Success Manager Level 1 Certification Practice Test 2025 - Free Customer Success Certification Questions and Study Guide

Question: 1 / 400

Which term measures how much revenue is retained during a given period?

Churn

Retention

The term that accurately measures how much revenue is retained during a given period is Gross Revenue Retention. This metric focuses on the total revenue from existing customers at the beginning of a period compared to the revenue retained from those same customers by the end of that period, excluding any expansion revenue or new customer revenue. It directly reflects the effectiveness of customer success initiatives in maintaining customer relationships and minimizing losses due to churn or downgrades.

While "retention" is a relevant concept, it is a broader term that does not specifically quantify revenue; it simply refers to the ability to keep customers over time. The other terms listed, like "churn" and "expansion revenue," pertain to different aspects of customer success metrics. Churn measures the percentage of customers lost, while expansion revenue refers to additional revenue gained from existing customers. Therefore, Gross Revenue Retention is the precise metric for assessing revenue retention during a specific period.

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Expansion Revenue

Gross Revenue Retention

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