Definition
GRR (Gross Revenue Retention) is revenue retention excluding expansions. It measures how much revenue you keep after churn and downgrades only.
Why it matters
GRR shows product stickiness without upsell effects. It is a core metric for pricing changes that might increase churn.
Pricing implications
If GRR drops after a price increase, your entry pricing or value messaging may be misaligned. Use GRR to validate pricing changes before relying on expansion to offset churn.
Measurement tips
Track GRR by cohort and plan to see which segments are most sensitive to price changes.
Checklist
- Use a consistent time window (monthly or annual).
- Exclude expansion revenue from GRR.
- Track GRR by plan and segment.
- Compare GRR before and after pricing changes.
- Use GRR alongside NRR for a complete view.
- Keep definitions consistent across finance and product.
- Avoid mixing one-time fees in retention metrics.
- Monitor GRR for early-warning churn signals.