Net Revenue Retention (NRR)
This indicates the percentage of recurring revenue (including any expansion, upsells, cross-sells, and after accounting for contraction and churn) kept from existing customers over a period.
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THE TRUTH: Your NRR should answer one basic question, "If we never acquired any new customers, will our revenue grow, stall, or shrink?"
If NRR:
=100%: revenue has stalled, which means customers renew but no expansion is taking place.
>100%: customers expand more than they churn and there's a visible revenue growth.
<100%: More revenue is being lost.
This is the single most important metric in CSM.
If NRR:
=100%: revenue has stalled, which means customers renew but no expansion is taking place.
>100%: customers expand more than they churn and there's a visible revenue growth.
<100%: More revenue is being lost.
This is the single most important metric in CSM.