Net Revenue Retention (NRR) is a metric that measures a company's ability to retain and grow revenue from existing customers over a specific period of time. It accounts for changes in revenue from upsells, expansions, and lost revenue from customer churn, providing a comprehensive view of revenue retention and growth from existing customers.
Net Revenue Retention (NRR) and Gross Revenue Retention (GRR) are both important metrics for SaaS and subscription-based businesses, but they offer different insights into a company's revenue growth and customer retention. NRR provides a comprehensive view of revenue growth, factoring in upsells, expansions, and lost revenue from churn, while GRR focuses solely on retained or lost revenue from existing customers without considering upsell revenue.
Net Revenue Retention (NRR) plays a significant role in driving business growth, particularly for SaaS and subscription-based companies. A high NRR indicates effective customer retention and revenue growth through upsells and expansions, reflecting a company's success in increasing customer value over time. This is crucial for sustainable growth and the ability to scale profitably.
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