I often hear about NRR, but how do you calculate it specifically?"

[mdsojolh444]

Are you worried about how you can use NRR to grow your business?

Using indicators to analyze the current situation is very important, but if you introduce them without properly understanding their meaning, you will not get the results you expect.

In this article, we will explain in detail the meaning of NRR (Net Revenue Retention), how to calculate it, and how to use it effectively in your business.

By reading to the end, you will not only understand NRR , but also belgium whatsapp number data get some hints for developing your future action plan.

The explanations are easy to understand even for beginners, so please refer to them.

For those who work in customer success or want to get started

Download
What is NRR?
NRR stands for "Net Revenue Retention" and is an indicator that is mainly emphasized in subscription-based businesses such as SaaS (Software as a Service).

NRR is an indicator that shows the "sales retention rate," or the degree to which revenue from existing customers has increased or decreased over a certain period of time (usually one year).

Its unique feature is that it allows you to grasp the trends of only existing customers, excluding sales to new customers.

For example, simply looking at the overall sales growth rate can make it difficult to distinguish the impact of increased new customer contracts from the impact of repeat purchases and upselling from existing customers.

NRR 's role is to make up for this .

By regularly checking your NRR , you can visualize the success of your customer retention and upselling/cross-selling strategies and measure the stability of your long-term revenue base.

Differences between NRR and similar metrics
The following indicators have similar concepts to NRR :

GRR (Gross Revenue Retention)
is an index that purely compares sales to existing customers, including cancellations. It does not take into account revenue increases from upselling or cross-selling, so it is useful for understanding customer retention.
MRR (Monthly Recurring Revenue)
is an indicator that shows monthly recurring revenue. It allows you to grasp the overall trend of monthly sales, including new contracts, cancellations, upselling, etc.
A major feature of NRR is that it takes into account not only cancellations and downgrades, but also increased sales through upselling and cross-selling.

In other words, it is an indicator that can provide a more accurate reading of the extent to which relationships with existing customers have expanded .