What is Net Revenue Retention Rate?
The Net Revenue Retention (NRR) rate provides a clear picture of a company’s ability to generate revenue from its current customer base within a specific timeframe, considering sources like upgrades, downgrades, and churn.
If the NRR is 100 percent, it means the company retains all its existing revenue. An NRR above 100 percent indicates that customers are spending more than they did previously, contributing to business growth.
Quantifies expansion revenue, showcasing the ability to grow within your existing customer base.
Informs strategic investment by highlighting the effectiveness of upselling and cross-selling efforts.
Monitors ongoing performance, enabling proactive adjustments to your customer lifecycle.