Net Revenue Retention (NRR)
By: A Staff Writer
Updated on: Jul 19, 2024
What: Tracks revenue changes over time from existing customers ONLY. Accounts for expansion revenue (upsells), downgrades, and lost customers (churn).
Who: Not a single inventor, but crucial for SaaS and recurring revenue businesses.
Why: Reveals if you’re truly serving your existing customer base well. Helps spot problems before mass churn hits.
When: Monitor regularly, and alongside gross revenue figures to get the full picture.
How:
-
- Calculation can be complex, so reliable software is helpful.
- Focus on what DRIVES the number up or down.