Product metrics and goals
Net revenue retention (NRR)
Also called NRR, Net dollar retention, NDR
How much revenue you keep from existing customers, including what they add through upgrades. Above 100% means they grow faster than they leave.
How it's worked out
(Revenue at the start + upgrades − downgrades − cancellations) ÷ revenue at the start × 100
NRR shows whether customers become more valuable over time. Above 100%, a business would grow even if it stopped winning new customers.
It's usually reported for a year, comparing a group of customers' revenue now with the same customers' revenue twelve months ago. Monthly figures can be compounded to estimate it.
In practice
Customers paying $120,000 a month at the start add $2,400 and lose $1,500: monthly NRR is 100.75%.
Common mistake
Including revenue from new customers. NRR is about the customers you already had.