Net Revenue Retention
Definition
Net Revenue Retention: Net Revenue Retention measures the percentage of recurring revenue retained from existing customers over a period, including expansions, contractions, and churn. NRR above 100% means expansion revenue exceeds churn, indicating healthy growth from the existing customer base alone.
Example Usage
“With 120% NRR, we're growing revenue from existing customers faster than we lose it to churn.”
Common Misconceptions
Related Terms
Churn Rate
Churn rate measures the percentage of customers or revenue lost over a period. Customer churn counts lost accounts, while revenue churn measures lost...
Expansion Revenue
Expansion revenue is additional revenue from existing customers through upsells, cross-sells, or increased usage. Strong expansion revenue can offset...
Customer Lifetime Value
Customer Lifetime Value (LTV) is the total revenue a business can expect from a single customer account over the entire relationship. LTV is calculate...
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