Average New Contract Duration

Metric Name

Metric Family

Income Statement

Metric Definition

Average length of time that new customers commit to their initial contracts

Formula

Average New Contract Duration = Sum of New Contract Duration / Number of New Contracts

Application

Gives information about initial commitment from new customers. This metric can guide marketing and sales teams in directions that would increase customer acquisition. Provides forward aimed guidance on future revenue from new customers. Varying differences in new contract duration can generate more targeted engagement strategies