Product metrics and goals
Gross revenue retention (GRR)
Also called GRR, Gross dollar retention
How much revenue you keep from existing customers before counting any upgrades. It can't go above 100%, so it shows losses plainly.
How it's worked out
(Revenue at the start − downgrades − cancellations) ÷ revenue at the start × 100
GRR is NRR with the upgrades taken out. A business can have a healthy NRR because a few customers expand a lot, while quietly losing many others. GRR shows that.
For B2B software, keeping about 90% or more a year is usually considered good.
In practice
Starting at $120,000 and losing $1,500 to downgrades and cancellations gives a monthly GRR of 98.75%.
Common mistake
Reading a monthly GRR as if it were annual. 98% a month is about 78% a year.