Statement of Work (SoW) Renewal Rate
Percentage of project or retainer contracts renewed at expiry
What is Statement of Work (SoW) Renewal Rate?
Statement of work (SoW) renewal rate is the percentage of SoWs that come up for renewal and are renewed. It shows how many clients agree to continue working together.
For services firms, renewals are a strong sign of client satisfaction and a reliable source of revenue.
How this KPI is measured
- Function
- Customer Success & Service
- Sub-function
- Contract Management
- Industry
- All Industries
- Type
- Lagging
- Impact
- Revenue
- Unit
- %
- Measurement frequency
- Quarterly / Annual
- Formula
- (SoWs renewed / SoWs due for renewal) × 100
How to calculate it
Divide SoWs renewed by SoWs due for renewal, and multiply by 100.
For example, if 36 of 45 SoWs due were renewed, the rate is 80%.
Track it by client and service type, and look at renewals with changed scope or value, not just whether they renewed.
Where it is used
Measuring client loyalty
See who continues.
Forecasting revenue
Estimate renewals.
Planning capacity
Anticipate ongoing work.
How to improve it
Tips and common mistakes
- A renewal at lower value is still a partial loss.
- Agree success measures at the start of the SoW.
- Do not leave renewal to the last month.
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