Net Revenue Retention (NRR) is The percentage of recurring revenue retained from existing customers over a period, including expansion (upsells, cross-sells) and contraction (downgrades, churn).
Net Revenue Retention (NRR) measures whether your existing customer base is growing or shrinking, independent of new sales. An NRR above 100% means your customers are spending more over time. Below 100% means you're leaking revenue faster than you're expanding.
Concerning: Below 100% (you need new sales just to stay flat)
NRR is the metric that boards, investors, and analysts watch most closely because it reflects product-market fit and customer value delivery simultaneously. RevOps owns the measurement; CS and Product own the improvement. See all 25 RevOps KPIs for context.
Frequently Asked Questions
What's the difference between NRR and GRR?
Gross Revenue Retention (GRR) only measures losses (churn + contraction), always ≤100%. NRR includes expansion revenue, so it can exceed 100%. GRR shows how well you retain; NRR shows whether your base grows.
