Definition
NRR (Net Revenue Retention) measures revenue retained including expansions, contractions, and churn.
Why it matters
NRR shows how revenue grows (or shrinks) within your existing customer base. It is a core metric for pricing changes.
Pricing implications
If NRR is high, expansions are offsetting churn. If NRR is low after a price change, you may be losing revenue from existing customers faster than you can expand.
Measurement tips
Track NRR by cohort and plan to see which segments expand reliably.
Checklist
- Define the time window (monthly or annual).
- Include expansion and contraction in the calculation.
- Separate NRR from GRR for clarity.
- Track NRR by plan and segment.
- Compare NRR before and after pricing changes.
- Avoid mixing one-time fees in NRR.
- Use consistent definitions across teams.
- Monitor NRR trends alongside churn.