Retention & Net Revenue Expansion

The best subscription businesses keep nearly all their customers and sell them more every year. Net revenue retention captures both in one number. Here is how it works and why it matters so much.

Gross vs. net retention

Gross retention asks: of the revenue we had from customers a year ago, how much did we keep, ignoring any upsells? It can never be above 100%. Net revenue retention (NRR) adds expansion: extra seats, upgrades and more usage from the same customers. It can be well above 100%.

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