Glossary · Customer Satisfaction
Net Revenue Retention
Revenue retained from existing customers including upsell and churn. SaaS growth health in one number.
Net Revenue Retention in Practice
Calculation
NRR = (Starting MRR + Expansion - Downgrades - Churn) / Starting MRR × 100%
Why NRR Matters More Than Churn
A company can have high churn and still grow healthily if expansion outpaces it. NRR captures that dynamic in a single figure. It is why NRR has replaced logo churn as the headline retention metric for investors.
Track NRR monthly, by segment and by cohort. Enterprise segments typically have higher NRR than SMB because expansion opportunities are bigger.
Frequently Asked Questions
Above 100% is healthy for B2B SaaS. Above 110% is strong. Above 120% is exceptional and typical of top public SaaS companies. NRR below 100% means the existing base is shrinking and the company must grow faster on new logos just to stand still.
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