Retention
Retention for your entire book each month.
To determine your monthly average retention, you'll need to know:
Total policies from 12 months ago
Total policies as of the last month
New business total policies written over the past 12 months
For example, let's say 12 months ago you had 1,000 policies. At the end of 12 months ending last month, you had 1,150 policies. Subtract the 250 policies you wrote new over the 12 months from the ending total of 1,150, and you kept 900 or 90% of the original 1,000. Be sure you're not counting rewrites as new!
Retention by Policies in Force (PIF):
1150 - 250 = 900
900 / 1000 = 0.90 or 90% Retention
Average length of time clients stay with you.
Determine the number of years each client has been with you. Tracking in whole years as opposed to months is easier when you start. Add up all the years clients have been with you (this will be big). Then divide that total by the number of clients you have.
Excellent marketing tactics should deliver a $1.00 return for every $1.00 spent or better in the first year. You will get a much stronger picture for how profitable your marketing is when you know how long you retain your clients on average.
(Chuck Blondino, Grow Your Agency & Improve Your Marketing by Tracking Key Metrics)